Swiss negotiators head for next round of tariff talks in Washington

ZURICH: Swiss Economy Minister Guy Parmelin is set to meet U.S. Trade Representative Jamieson Greer for trade talks on Thursday, the Swiss government said, as negotiations to lower President Donald Trump's crippling tariffs enter a crucial phase.

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Switzerland is negotiating to reduce US tariffs from 39% to 15%, with Trump's final approval pending.
The cut would safeguard thousands of jobs and revive growth above 1%, says KOF Economic Institute.
Key sectors like machinery, watches, and food exports would benefit most from the tariff relief.

Switzerland is trying to negotiate a reduction in import tariffs of 39% on its goods that Trump imposed in August, with a source telling Reuters an agreement was close.

Parmelin flew to Washington with Helene Budliger-Artieda, head of the State Secretariat for Economic Affairs (SECO), who appeared "quite optimistic" when they set off in a government aircraft, broadcaster SRF reported.

The Swiss government did not provide further details on the ongoing talks.

Parmelin had described as "very constructive" a conversation the pair had with Greer on a video telephone call on Friday.

A deal to lower the tariffs to 15% could be arranged in the next week or two, said the source, who spoke on condition of anonymity, although it still needed a final sign-off from Trump.

This week Trump said he was working on a deal to lower the tariffs on goods from Switzerland.

"I haven't set any number, but we're going to be working on something to help Switzerland," he said.

A reduction in tariffs to 15% from 39% would be a "ray of hope" for Swiss industry, said Hans Gersbach, a director of the KOF Economic Institute at ETH Zurich.

Switzerland's machinery, precision instruments, watchmaking, and food sectors, which have the U.S. as a big export market, would get the most relief from such a cut, he added.

At a tariff rate of 39%, between 7,500 and 15,000 full-time jobs in Switzerland would be at risk, KOF estimates. But a rate of 15% would dispel such a threat, Gersbach said.

In the latter case, Swiss economic growth, now forecast by KOF at 0.9% in 2026, would exceed 1% again, he added.

"This would be a relief for the entire economy," Gersbach said.