Swiss President Rushes to DC for Urgent Trump Talks After 39% Tariff Shock

Switzerland’s President Karin Keller-Sutter and top government officials made an urgent trip to Washington, D.C., on Tuesday to hold high-level talks with the Trump administration, in response to a recently announced 39% tariff on Swiss goods set to take effect on Thursday. The move has raised alarm across key Swiss industries, including chocolate, machinery, and watchmaking, and has forced a last-minute diplomatic effort to address what many see as an unbalanced and punitive trade stance [1].

The 39% tariff is more than two and a half times higher than the rate applied to EU exports to the U.S., and nearly four times the rate on British exports. It also exceeds the 31% tariff rate initially outlined by Trump in April under his so-called “Liberation Day” tariffs. The Swiss government described the Washington visit as a necessary step to “improve the tariff situation” and emphasized Switzerland’s status as the sixth-largest foreign investor in the U.S. and the top investor in research and development [1].

President Keller-Sutter, who also holds the finance portfolio, was reportedly involved in a last-minute call with Trump before a tariff deadline expired on August 1. In a CNBC interview, Trump reportedly criticized the Swiss trade deficit with the U.S., which stood at $38.3 billion in 2024 according to U.S. Census Bureau data. He claimed that Switzerland had wanted to pay only 1% tariffs, a proposition he rejected outright [1].

Swiss officials have pushed back, noting that U.S. goods face minimal tariffs in Switzerland and arguing that the U.S. approach is one-sided. Business leaders have expressed growing concern, particularly over the potential impact on Swiss competitiveness in the U.S. market. Ivan Slatkine, head of the Federation of Romandie Enterprises, said the unpredictability of the Trump administration made negotiations difficult and warned that Swiss companies could face an uphill battle to maintain their market position [1].

Slatkine also noted that many Swiss firms had been led to believe a deal was close to being finalized, only to face a sudden escalation in tariffs. While the pharmaceutical industry—represented by major firms such as Roche and Novartis—currently remains exempt from the 39% rate, Slatkine warned that the move could serve as a warning signal that even that sector might not be safe if talks fail [1].

The Swiss Federal Council convened an emergency meeting following the tariff announcement and stated that it was preparing “new approaches” for discussions with U.S. officials. The government emphasized its readiness to offer a more attractive proposal, while also seeking to ease the current tariff burden. The council also noted that Switzerland is open to addressing U.S. trade concerns while protecting its own economic interests [1].

Under the new U.S. tariff regime, Switzerland now faces one of the highest export duties of any country—surpassed only by Laos, Myanmar, and Syria, all at 40-41%. The steep rates have already begun to affect investor sentiment, with Swiss stocks declining after the recent U.S. holiday weekend as traders grappled with the implications of the Trump administration’s latest trade decision [1].

Source: [1]Swiss president rushes to DC for crunch talks with Trump after shocking 39% tariff (https://fortune.com/2025/08/05/swiss-president-washington-dc-tariffs-trump/)

[2]Contents - Bloomberg News (https://www.advisorperspectives.com/firm/bloomberg-news)