Swiss president meets with US Secretary of State Rubio for last-minute trade talks
FILE PHOTO: Swiss President Karin Keller-Sutter talks to the medias after a news conference, after meeting in separate bilateral meetings with Chinese and U.S. delegations ahead of trade talks in Geneva, Switzerland, May 9, 2025. REUTERS/Denis Balibouse/File Photo
ZURICH - Swiss President Karin Keller-Sutter met with U.S. Secretary of State Marco Rubio on Wednesday with Washington potentially seeking more energy and defence exports as part of a deal that would avert a crippling 39% U.S. tariff on Swiss goods.
Switzerland was stunned by President Donald Trump's decision last week to apply the steep rate - among the highest announced since he launched his global trade reset - which threatens to inflict major damage on its export-orientated economy.
Keller-Sutter and Business Minister Guy Parmelin flew to Washington on Tuesday for last-minute negotiations aimed at reducing the tariffs before they go into effect on Thursday.
The Trump administration, meanwhile, is pushing for Switzerland to buy more energy and defence products, according to a Swiss source familiar with the discussions.
Parmelin had already raised the possibility of Switzerland buying U.S. liquefied natural gas as one of the options to secure a better 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.
Under a deal the EU struck with Washington last month to secure a 15% tariff rate, Brussels agreed to buy $750 billion worth of LNG, oil, and nuclear energy products over the next three years.
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And while the EU made no formal pledge to buy more U.S. arms, it did indicate to U.S. negotiators that U.S. suppliers would benefit from an increase in defence spending in line with higher NATO commitments agreed under pressure from Trump.
Both concessions, along with a pledge to invest more in the U.S., were seen as important in clinching a deal, said a person familiar with the U.S.-EU negotiations.
Switzerland already purchases some military hardware from the U.S. and has placed a 6-billion-franc ($7.43-billion) order to buy Lockheed Martin F-35A Lightning II fighter jets.
While the Swiss government is focused on sweetening its offer to Washington and says it is not planning countermeasures against the U.S. tariffs, some Swiss politicians have called for the F-35 deal to be scrapped over the trade dispute.
LOOMING ECONOMIC HIT
Keller-Sutter's meeting with Rubio was expected to last one hour and start at 10:15 a.m. (1415 GMT), according to the State Department's public schedule.
"There are currently no plans to meet President Trump, but the situation could change," a Swiss government official said.
Earlier on Wednesday, Keller-Sutter and her team met with Swiss business leaders including Roche Chairman Severin Schwan as well as Alfred Gantner and Marcel Erni, founders of Swiss private equity firm Partners Group.
The group, which also included Daniel Jaeggi, president of global energy and commodity company Mercuria, spoke about the tariffs situation, the government said without giving further details.
Further meetings are planned with executives from other Swiss companies present in the United States.
"We greatly appreciate the tireless commitment of the Federal Council and the Federal Administration," said Noe Blancpain, executive board member of Swiss industry association Swissmem.
The U.S. is a leading buyer for Swiss watches, machinery and chocolate. Those industries and others will suffer if the 39% rate - much higher than those secured by the EU, Britain and Japan - is implemented, with business associations warning that tens of thousands of Swiss jobs are at risk.
Swiss cheese producers, for example, are bracing for a steep drop in sales in the United States, which bought 11% of Swiss cheese exports like Gruyere and Emmentaler last year, due to the tariffs.
"The taxes are enormous," Anthony Margot, a fifth-generation cheese maturer, told Reuters. "We can't replace a market like the United States overnight."
The blue chip Swiss Market Index was down 1% in early afternoon trading on Wednesday ahead of the introduction of tariffs.
WINNING OVER TRUMP
Following talks with Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, Switzerland had agreed a draft agreement with the United States in early July that was reported to include a 10% tariff rate.
Trump's U-turn on Friday, however, followed what some U.S. officials said was a fraught telephone call with Keller-Sutter. Swiss sources said the call was not a success, but denied there was a falling out between the two leaders.
Claude Maurer, chief economist at Swiss think tank BAK Economics, said it did not matter who the Swiss officials met with on the first day, as long as the delegation wins over Trump.
"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 Maurer.
"Whoever is best positioned to make that happen will be important." REUTERS
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