Talks to deal with the crisis was held on Monday (4.8.25) by her government Swiss In an attempt to reach a proposal that could convince US President Donald Trump not to impose duties 39% in the country in less than three days.
At the rate-the highest among industrial countries-in force on August 7, President and Minister of Finance Karin Keller-South convened an extraordinary meeting of the ruling Federal Council (p. Switzerland) on Monday in order to examine the data on Monday.
Negotiators with the Swiss Secretariat of Economic Affairs have contacted their US counterparts to try to find a way to move on. The organization, which resulted in a much more favorable temporary deal with the US more than a month ago, also briefed business leaders on Monday.
Keller-Saher, who criticized the Swiss press over the weekend because she allowed Trump to mislead her without a spare plan, said she would be willing to make a last-minute trip to Washington if she thought there was a chance of reaching an agreement.
“I do not rule out such a visit, but first, the two sides will have to reach their positions,” Schweiz am Wocenende told the newspaper. It is not clear what, if there was, a reaction from the US government.
“It is unfortunate that the Swiss were so late to react,” says Thomas Borer, a former Swiss diplomat who is now heading for his own consulting company, reiterating the criticism of the press.
Despite the reactions, the Swiss president does not face immediate risk of losing her job. The system is designed for a continuation and the presidency alternates on an annual basis, which means that its term in governance of the country will end at the end of the year.
The Trump government justified Friday’s move claiming that Switzerland had essentially stolen money from the US and therefore had to be duty to be a duty analogous to the trade deficit-an idea that Ketter-Sutter rejected as “irrational”.
Switzerland recorded a bilateral trade surplus of $ 38 billion with the US last year, according to US census data, which was the 13th largest for the world’s largest economy. While Swiss exports to the US collapsed after importing duties in April, they recovered in June, indicating that trade between the two countries remained strong.
There are not many routes available to Switzerland, but one is the supply of liquefied natural gas from the US. While the mainland focuses on hydroelectric and nuclear power, it uses a small amount of natural gas, mainly in winter to mitigate its fluctuations in its energy supply. If Switzerland chooses to import more natural gas, it should travel through neighboring countries, which could potentially increase the transit cost.
So far, the expectation seems to be that Keller-Sutter and the government will secure a better deal. The SMI Swiss market reference index fell only 0.43% at 11:37 am Monday.
“We expect that the negotiations will bring the Swiss tariff rate of 39% closer to the 15% agreed with the EU,” Lombard Odier’s investment strategic analysts said in a research note. “In the unlikely event that this commercial dispute is not resolved,” they added, they will review their prediction of the gross domestic product.
Given the “volatility of the decisions we have seen from the US”, there is hope that a solution can be found, Franciska Riser, a member of the Green Party, told Bloomberg.
“On the other hand, we must draw political conclusions from the situation and recognize that – at least under the Trump government – America is no longer a reliable partner. This means that we should enhance cooperation with the EU and coordinate more with our European partners, ”said Franciska Riser.