Switzerland could be close to securing a reprieve from the 39% tariffs imposed by the United States on its goods, according to a report by the newspaper Blick on Sunday, following a visit by business leaders to U.S. President Donald Trump that helped thaw relations.
The paper reported, without citing sources, that a letter of intent to resolve the trade deadlock is expected in the coming weeks, ahead of a deal set to be presented at the World Economic Forum in Davos this January.
The report continued to indicate that Trump and next year’s Swiss President Guy Parmelin, who is also the economy minister, are expected to unveil a plan for U.S. import duties. These duties will be similar to the 15% tariffs Washington has already agreed with the European Union, assuming all goes as planned.
Swiss business leaders push for trade relief with Trump
The Swiss Economic Affairs Ministry did not comment on the report, which follows a visit by Swiss business leaders with Trump on Tuesday. It stated that the meeting, which included executives from MSC, Rolex, Partners Group, Mercuria, and Richemont, as well as MKS, was a private initiative that it supported, but conducted independently of its own efforts.
The Swiss ministry stated that the Federal Council is primarily responsible for negotiations with the relevant U.S. authorities, and that Federal Councillor Parmelin maintains regular contact with U.S. officials, including Trade Representative Jamieson Greer.
During the visit, the Swiss delegation presented Trump with a Rolex watch for his presidential library and a specially engraved gold bar, according to Blick. The delegation also pledged to work toward reducing the U.S. trade deficit with Switzerland over the next five to seven years.
Other proposals included relocating gold smelting operations to the United States within the next 12 to 24 months and supporting U.S. infrastructure projects. Investments in pharmaceuticals and an increase in Swiss purchases of aircraft from American manufacturers were also discussed.
Trump showed goodwill towards the proposals, Blick said, while on Friday Greer spoke with Parmelin and Helene Budliger-Artieda from the State Secretariat for Economic Affairs (SECO) in talks the Swiss side described as “very constructive.”
Government negotiations continue amid private-sector initiative
Trump had initially imposed a 39% tariff on the country, threatening to drive up costs for chocolatiers, including Lindt, and watchmakers such as the Swatch Group and Rolex SA.
Swiss diplomats have also been engaged in negotiations with officials in Washington, hoping to have the levy reduced. The Swiss government was informed about the private-sector push; however, it didn’t control it, according to the Economy Ministry in Bern.
“This is a private initiative by Swiss business leaders, which the State Secretariat for Economic Affairs supported 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 also said that it “welcomes the commitment shown by the companies concerned,” however, that the government remains in charge of negotiations. Economy Minister Guy Parmelin is in regular contact with U.S. authorities, including Trade Representative Jamieson Greer, according to the statement.
In a social media post last week, 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.”
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 U.S. scrapped plans to impose tariffs on gold bars from Switzerland earlier this year after the proposal shocked global markets and threatened to disrupt supplies. Switzerland has recently proposed relocating some of its gold refining operations to the US as part of a bid to broker a broader trade deal.
As part of these efforts, top Swiss trade diplomat Helene Budliger Artieda has made several trips to Washington in recent weeks.
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