(Nov 5): US President Donald Trump met with executives from Switzerland and announced additional trade talks, as the European nation’s private sector enters the fray in seeking to reduce a tariff rate that ranks higher than any other developed nation.
Trump has imposed a 39% tariff on the country, threatening to drive up costs for chocolatiers including Lindt and watchmakers such as Swatch Group and Rolex SA.
Swiss diplomats have also been engaged in negotiations with the officials in Washington in the hope of having the levy cut. The Swiss government was informed of the private-sector push, but didn’t control it, according to the economy ministry in Bern.
“This is a private initiative by Swiss business leaders, which was supported by the State Secretariat for Economic Affairs in its preparation, but is taking place independently of the Federal Council’s involvement in this matter,” a spokesperson said in an email.
The ministry added that it “welcomes the commitment shown by the companies concerned,” but that the government remains in charge of negotiations. Economy Minister Guy Parmelin is in regular contact with US authorities including Trade Representative Jamieson Greer, according to the statement.
In a social media post on Tuesday, Trump said it was “my Great Honor to just meet with high level Representatives of Switzerland. We discussed many subjects including, and most importantly, Trade and Trade Imbalance.”
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He said Greer will “discuss the subjects further with Switzerland’s Leaders”.
The White House did not immediately respond to a request for comment on who Trump met with. The Swiss government declined to comment, saying it’s up to the executives to disclose their involvement.
The US earlier this year scrapped plans to impose tariffs on gold bars from Switzerland after the plan shocked global markets and threatened to disrupt supplies. Switzerland has recently proposed moving some business from Swiss gold refiners to the US as part of a bid to broker a broader trade deal.
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As part of Switzerland’s push, its top trade diplomat, Helene Budliger Artieda, has made repeated trips to Washington in recent weeks.
Swiss President Karin Keller-Sutter declined to give a timeline for negotiations when asked about the progress late last month.
“In the end the US president decides,” she said. “So maybe it just needs some more patience.”
Despite the tariff rate, indications are that demand for Swiss goods has, in some cases, withstood the impact of the tariffs. Foreign sales to the US excluding gold, adjusted for seasonal swings, were 43% higher in September than in August, the country’s customs office said last month. Still, Bern has cut its growth forecast for next year based on the expected impact of the tariffs.
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