Swiss economy minister in US to seek better deal on Trump tariffs

BADEN, Switzerland: Swiss economy minister Guy Parmelin is due to meet senior U.S. administration officials on Friday in his country's latest effort to negotiate down the crippling 39% tariffs imposed by U.S. President Donald Trump on most Swiss exports.

AI Brief

Swiss minister Parmelin flew to Washington for talks, aiming to negotiate lower US tariffs that are hurting Swiss exports.
Switzerland proposed increased US investments and energy access, hoping to avoid future tariffs on its vital pharmaceutical sector.
Swiss leaders warn tariffs could harm growth and raise inflation, with UBS's CEO expressing concern over economic fallout.

Switzerland's government said that Parmelin flew to Washington on Thursday night, with talks planned on Friday at a "ministerial level".

The Economic Affairs Department declined to give further details of the talks, including which officials Parmelin would meet.

Switzerland has prepared a new package of economic measures aimed at persuading the United States to bring down its tariffs, according to a person familiar with the matter.

These include proposals for businesses to invest more in the United States as well as increasing defence procurement and greater market access for U.S. energy interests in Switzerland, according to two other sources familiar with the matter.

If it can lower the 39% tariffs, Switzerland would then be eager to avoid new tariffs surfacing in the pharmaceutical industry, they added.

So far, the pharmaceutical industry is not subject to U.S. tariffs, although the threat is still looming.

Pharmaceuticals are particularly important to the Swiss economy, representing nearly half of the country's 65 billion Swiss francs ($81 billion) of exports to the U.S. in 2024.

Switzerland has been desperately trying to lower the tariffs which are among the highest of any applied under Trump's global trade reset.

A last-ditch attempt led by President Karin Keller-Sutter failed to produce a better deal and the tariffs went into effect on August 7, threatening major damage to the Swiss economy by reducing access to its biggest export market.

Sergio Ermotti, CEO of Swiss banking giant UBS, said on Friday he was worried U.S. tariffs would put pressure on economic growth and contribute towards higher inflation.

Speaking at a business event in Baden, he said he was disappointed by the tariffs imposed on Switzerland, but was confident officials would be able to reach an agreement for lower duties.