Swiss President Karin Keller-Sutter and Economy Minister Guy Parmelin traveled to Washington on Tuesday, officials said, in a final attempt to stave off former President Donald Trump's 39 percent tariffs on Swiss exports to the United States.
The increase in US tariffs from the original 31% announced in April has sparked alarm in Switzerland after an unexpected data update on Friday.
The new tariff conditions should come into effect on Thursday.
During the visit, Keller-Sutter and Parmelin plan to “urgently hold talks with American representatives to soften tariff policies toward Switzerland,” the government said in a statement.
The text of the message does not specify which American officials will be meeting with, or whether dialogue with Trump himself is possible.
An insider familiar with the Trump administration's position noted that an agreement with Switzerland is possible provided that improved terms of cooperation are quickly provided.
“The talks had some difficult moments, but the situation could change if the Swiss come up with a strong proposal,” the source said, referring to Trump's phone call with Keller-Sutter on Thursday.
“Especially given the massive trade imbalance on a per capita basis,” he continued.
In an interview with CNBC, Trump mentioned his dialogue with Keller-Sutter, emphasizing his dissatisfaction with the size of the US trade deficit with Switzerland.
“I recently had a conversation with the Swiss side,” he said, referring to his conversation with Keller-Sutter. “The lady was polite, but showed reluctance to dialogue, and their country practically does not make payments,” the former president added in the interview.
“I said: our deficit is $41 billion, madam… and you propose to pay 1%? No, that is unacceptable. We are losing, because I perceive the deficit as a loss.”
Swiss authorities held an emergency meeting on Monday to work out a response, saying they were prepared to offer the US “more favourable terms”.
The government also expressed its intention to continue the negotiation process even after August 7.
Bern did not disclose details of potential concessions, but stressed that retaliatory sanctions against Switzerland were not being considered.
Parmelin had previously pointed to the possibility of increasing purchases of American liquefied natural gas (LNG), as well as additional investments by Swiss businesses in the United States.
The aim of the visit, according to the government, is to present “an improved proposal that would reduce the tariff burden on Swiss exports, taking into account US concerns.”
A number of Swiss businessmen, including Nicolas Hayek, the head of the watchmaking concern Swatch Group, called on Keller-Sutter to personally negotiate with Trump in Washington.
Experts warn that the 39 percent tariffs will cause significant damage to Switzerland's export-oriented economy by restricting access to a key market for watches, industrial equipment and chocolate.
Hans Gersbach, an economist at the KOF Zurich University of Technology (ETH), said the Swiss delegation must present a strong case for delaying the tariffs, calling the visit the “last chance” to renegotiate the terms.
“Small concessions will not be enough – we need significant numbers that Trump can present as a diplomatic success,” Gersbach emphasized.
“Keller-Sutter and Parmelin should personally approach Trump. He is the one making the decisions,” the economist added, expressing cautious optimism about the outcome of the talks.
According to him, the Swiss government is aware of the critical nature of the situation and is actively working to reach a compromise.
“A 39 percent tariff, especially against the backdrop of the 15 percent rate for the EU, would immediately hit the Swiss economy,” Gersbach concluded.
Sourse: breakingnews.ie
