Customs duties: Switzerland is trying to coax the United States

Switzerland will once again attempt to convince its American partners on Friday not to seal its exports with the punitive customs duties promised by Donald Trump, who would have serious consequences on economic activity and employment.

The opportunity is dreamed: US Treasury Secretary Scott Bessent must come to Geneva to meet the Chinese Deputy Prime Minister He Lifeng and try to cool the trade war launched by Donald Trump.

The president of the Confederation Karin Keller-Sutter, who is also Minister of Finance, and the Minister of the Economy Guy Parmelin will meet Mr. Bessent as well as the representative to trade Jamieson Greer in a large hotel in the city.

Few details have so far filtered on these discussions, but a press conference by the Swiss is scheduled for the late afternoon.

The four officials have already seen themselves at the end of April in Washington in an attempt to decrease the customs duties which, if implemented, are likely to heavily penalize several sections of the Swiss economy, including industry and watchmaking.

In view of its trade surplus with the United States, the Americans have threatened to tax Swiss exports in the United States at 31%.

For the time being, the Damocles sword remains unanswered.

In 2024, exports of goods from Switzerland to the United States rose to 52.65 billion Swiss francs, pharmaceutical products being the largest export post. Imports of goods from the United States was 14.13 billion francs, according to the Federal Customs Office.

Before this trip to Washington, Ms. Keller-Sutter had spoke by phone with the President of the United States shortly before he announced a partial suspension of these so-called “reciprocal” customs duties for a period of 90 days.

The “Washington Post” had wondered as to what influence this call could have had on this decision, the American daily saying that the president of the Confederation had insisted that Switzerland is an important investor in the United States where it creates jobs.

Ms. Keller-Sutter had then briefly revised Donald Trump on the sidelines of the funeral of Pope Francis in the midst of the heads of state who had made the trip to the Vatican, the Swiss press reported.

In the aftermath of the April 2 announcement, the Federal Council (government) recalled that Switzerland is the sixth foreign investor in the United States and even occupied first place in research and development, the pharmacy being a key sector of the Swiss economy.

Switzerland’s trade surplus is not due to “unfair practices”, insisted on the government’s press release, stressing that all industrial customs duties had been abolished in January 2024 and that 99% of goods from the United States could enter Switzerland with frank customs rights.

The Swiss government had also recalled that its trade surplus is mainly explained by the weight of pharmaceutical products, the first export sector in the Alpine country.

The repercussions of American customs duties for the Swiss economy are still difficult to quantify insofar as pharmaceutical products were not targeted in the measures announced in early April, even if the administration of Donald Trump has been blowing since hot and cold on these products.

In addition, large Swiss companies have for many of them factories in the United States, especially having the risks of SMEs weigh.

But even the Swiss multinationals strongly established in the United States are not entirely spared. During the publication of his quarterly sales, the nestlé food giant indicated that his Nespresso coffee pods, made in Switzerland, are likely to be affected.

Faced with the uncertainties concerning the pharmacy, the other two heavyweights of the Swiss economy, Novartis and Roche, took the lead.

Novartis said in mid-April increase its investments in the United States by $ 23 billion over five years, Roche announcing shortly after wanting to invest $ 50 billion, also over five years.