Swiss president meets US Secretary of State for last-minute trade talks
The Swiss delegation, which includes Business Minister Guy Parmelin, landed in Washington on Tuesday for final negotiations. The talks come just one day before the punitive tariffs are set to take effect, threatening major damage to Switzerland's export-reliant economy.
According to a Swiss source familiar with the talks, the Trump administration is pushing for Switzerland to buy more liquefied natural gas and defence products as part of any deal.
"Look at the European Union – they promised to buy LNG. Switzerland imports LNG too — maybe that's one path," Parmelin said over the weekend.
SEEKING A BETTER DEAL
In a recent agreement with Washington, the EU secured a reduced 15 per cent tariff rate by pledging to buy US$750 billion in energy products over three years and to increase defence spending.
While not formally committing to buy more arms, EU officials suggested US companies would benefit from increased NATO-linked military expenditures.
Switzerland already purchases US military hardware and has committed to buying F-35A Lightning II fighter jets from Lockheed Martin in a deal worth 6 billion Swiss francs (US$7.43 billion).
However, the trade standoff has fuelled calls from some Swiss politicians to cancel the F-35 order as a retaliatory measure if tariffs go ahead.
LOOMING ECONOMIC HIT
Keller-Sutter's meeting with Rubio began at 10:15am (1415 GMT) and was scheduled to last one hour, according to the State Department.
'There are currently no plans to meet President Trump, but the situation could change,' a Swiss government official told Reuters.
Earlier in the day, the Swiss delegation met with key business leaders, including Roche Chairman Severin Schwan, Partners Group co-founders Alfred Gantner and Marcel Erni, and Daniel Jaeggi, president of commodity firm Mercuria. Further meetings with Swiss companies operating in the US were planned.
"We greatly appreciate the tireless commitment of the Federal Council and the Federal Administration," said Noe Blancpain, executive board member of Swiss industry group Swissmem.
The US is a top destination for Swiss exports, including watches, machinery and chocolate, all of which would be hit hard by the proposed 39 per cent tariff, far exceeding the rates secured by Britain, Japan and the EU. Swiss business associations have warned that tens of thousands of jobs could be at risk.
Swiss cheese makers are particularly concerned, with the US accounting for 11 per cent of all cheese exports last year, including Gruyère and Emmentaler.
"The taxes are enormous," said Anthony Margot, a fifth-generation cheese maturer. "We can't replace a market like the United States overnight."
The Swiss Market Index was down 1 per cent in early afternoon trading on Wednesday ahead of the tariff deadline.
WINNING OVER TRUMP
The latest push follows a July draft agreement between Switzerland and the US, which reportedly set tariffs at 10 per cent. But Trump abruptly reversed course last Friday following what officials described as a difficult phone call with Keller-Sutter.
Swiss sources denied a breakdown in relations but acknowledged the call did not go well.
"Trump's team and the Swiss negotiators apparently already struck a deal. So it's in their mutual interest to get it over the line with Trump himself," said Claude Maurer, chief economist at Swiss think tank BAK Economics.
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