Swiss Are Ready to Make More Attractive Trade Offer to US

(Bloomberg) — The Swiss government said it is determined to win over the US on trade after last week’s shock announcement of 39% tariffs on exports to America.

“Switzerland enters this new phase ready to present a more attractive offer, taking US concerns into account and seeking to ease the current tariff situation,” it said in a statement on Monday, highlighting its foreign direct investments and research and development push in the US. It also excluded countermeasures for the time being.

With the new levies — the highest among industrial nations — scheduled to go into effect on Thursday, President and Finance Minister Karin Keller-Sutter convened an emergency meeting of the governing Federal Council to discuss how to proceed.

Negotiators with the Swiss State Secretariat for Economic Affairs have already reached out to their US counterparts to try and find a way forward. Bern is focusing on getting at least a longer timeline than Thursday, according to an official close to the talks, adding that anything improving the current situation would be a win.

Washington’s move came as a surprise as talks ahead of the Aug. 1 deadline had looked promising. A Thursday night call instead focused on Switzerland’s trade surplus in goods with the US.

The Swiss government stressed on Monday that the overhang “is not the result of any ‘unfair trade practices’.”

Switzerland’s outsized gold exports are partly to blame for the distorted trade balance. The country is the world’s biggest refining hub for the precious metal, with billions of dollars worth of gold constantly flowing into and out of the nation.

Pharmaceuticals, coffee and watches are the other main drivers.

Keller-Sutter, who was criticized in the Swiss press over the weekend for allowing Trump to blindside her without a backup plan, said she would be willing to make a last-minute trip to Washington if she thought there was a chance a deal could be made.

“I don’t rule out such a visit, but first, the two sides should come closer together in their positions,” she told the newspaper Schweiz am Wochenende. It’s not clear what, if any, response there has been from the US government.

Despite the backlash, the Swiss president doesn’t face any immediate danger of losing her job. The system is designed for continuity, and the presidency rotates on an annual basis, meaning her term running the country will come to a close at the end of the year.

Switzerland ran a $38 billion bilateral trade surplus with the US last year, according to US Census data, which was the 13th biggest for the world’s largest economy. While Swiss exports to the US collapsed after the introduction of tariffs in April, they rebounded in June, suggesting that trade between the two countries remained robust.

What Bloomberg Economics Says…

“We estimate that this represents a tariff shock of around 23 percentage points for the Swiss economy, putting roughly 1% of its GDP at risk over the medium term.”

-Jean Dalbard, economist. For full React, click here

There aren’t many routes available to Switzerland, but one is to offer to buy liquefied natural gas from the US. While the landlocked country is focused on hydroelectric and nuclear power, it does use a small amount of gas, primarily in the winter to cushion swings in its energy supply. Should Switzerland choose to import more gas, it would have to travel through neighboring countries, which could potentially increase transit costs.

So far, the expectation appears to be that Keller-Sutter and the government will secure a better deal. The Swiss market benchmark SMI was down just 0.5% as of 3:15 p.m. on Monday.

“We expect negotiations to bring the 39% Swiss tariff rate closer to the 15% agreed with the EU,” Lombard Odier investment strategists said in a research note. “In the unlikely event that this trade dispute is not resolved,” they added, they will revise their forecast for gross domestic product.

Given the “volatility of decisions we’ve seen from the US,” there’s hope that a solution may be found, Franziska Ryser, a lawmaker of the Green party, told Bloomberg.

“On the other hand, we must draw political conclusions from the situation and acknowledge that — at least under the Trump administration — America is no longer a reliable partner,” she said. “This means that we should strengthen cooperation with the EU and coordinate more closely with our European partners.”

–With assistance from Jana Randow, Dylan Griffiths and Anna Shiryaevskaya.

(Updates with gold in seventh paragraph)

©2025 Bloomberg L.P.