Swiss Are Still Holding Out for a US Trade Deal Before July 9

(Bloomberg) — The Swiss government is still hoping to clinch a trade deal with the US before Donald Trump’s July 9 deadline, but otherwise expects tariffs to remain at the current 10% level if negotiations continue further.

Speaking to reporters in Bern, President and Finance Minister Karin Keller-Sutter declined to say what the outstanding issues are, but did reveal that US officials have “accepted” that Switzerland isn’t a currency manipulator, following the Treasury’s decision to place the country on a watchlist earlier this month.

“I spoke with Scott Bessent on Monday and he was of the opinion that we are very close” to a trade accord, she said, describing a conversation with the Treasury secretary. “The US has only made one agreement — that’s with the UK — and he said he hopes that Switzerland will be No. 2 or No. 3.”

Keller-Sutter reiterated the government statement from earlier on Wednesday that officials anticipate US tariffs to remain at 10%, and not be lifted to 31% as originally outlined by the US president on April 2, should they not manage to get a deal in time. With two weeks left until the end of a 90-day grace period, Washington officials are working on multiple accord around the world, with little to show for it so far.

“We are hoping that still before July 9 — that would be ideal — an agreement in principle can be concluded,” she said, adding that in the “worst case” US tariffs could ratchet up, “but I hope that this won’t be the case.”

The earlier government statement said that the US “has repeatedly acknowledged that Switzerland is acting in good faith,” a sentiment that Keller-Sutter repeated. 

That echoes the stance the country has taken from the very beginning of the talks in April. Top trade official Helene Budliger later highlighted that Switzerland has been told “several times” — both by Bessent and US Trade Representative Jamieson Greer — that tariffs won’t ratchet up “as long as there is a perception that we’re negotiating in a bona fide way.”

The government has outlined a compromise around cutting tariffs for agricultural goods Switzerland doesn’t produce in a significant way — including citrus fruits, nuts and shellfish — and simplifying approval processes for American medical devices.

Asked what was holding up the talks, Keller-Sutter only very generally referred to “certain tariff lines,” before then saying that the “good news” is that officials have “clarified” that Switzerland doesn’t manipulate its currency.

More generally, she insisted that talks with the US continue to make progress.

“I have the impression they are just very busy with these negotiations — that’s why they have a backlog,” she said. “So this is not Switzerland’s fault.”

–With assistance from Paula Doenecke.

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