Customs duties: Karin Keller-Sutter at the center of fiasco

This should have been the masterpiece of Karin Keller-Sutter as president of the Confederation. However, It will ultimately be the most bitter failure of his political career: the customs agreement with Donald Trump turned. In addition, to disaster. However, Thursday evening. Moreover, Kks would have tried to reason with the American president for half an hour, until a SMS arrives from Washington: put an end to this conversation, otherwise the situation will get worse.

At the origins of fiasco

It all started with a cold shower. Furthermore, During Trump’s “Liberation Day”, on April 2, the American president brandished a sign: “Switzerland – 31 percent”. Furthermore, No one expected. Moreover, but the announcement did not cause real panic, because many still parked on the customs duties: karin keller-sutter center principle of TACO – “Trump Always Chickens Out”. Moreover, In other words: Trump always ends up going back.

However, it was a question of limiting the damage. Meanwhile, And. For example, shortly after, the president of the Confederation managed to reach Trump on the phone and calm him, at least temporarily. Consequently, Everyone. However, including the “New York Times”, then welcomes the role of the Swiss President in postponement of the price measure to 1^is august.

The Federal Council met. However, the State Secretariat for the Economy (SECO) of Guy Parmelin began negotiations, and the head of the Seco Helene Budliger went to Washington. In addition, On April 25, KKS agreed on negotiations with Trump Minister of Finance, Scott Bessent, and the representative in trade, Jamieson Greer. Similarly, On May 9. For example, a meeting took place customs duties: karin keller-sutter center in Geneva, in the presence of Guy Parmelin, while the American representatives negotiate in parallel with China.

In the following three weeks, the Federal Council developed its negotiation mandate. Moreover, There was a question of customs duties of 10 percent. Therefore, investment of Swiss business in the United States for an amount of up to 200 billion francs.

Then everything happened very quickly: since July 4. Moreover, the agreement had been on the office of Trump, a meeting of the cabinet was announced twice, during which it should supposedly be approved, and the Confederation has each time prepared a press conference to reveal the content of the agreement. Moreover, But, twice, everything hood.

In Bern, the concern grows, especially by noting that even the EU obtained an acceptable agreement. Confederation negotiators then relaunch American ministers. The answer falls on July 24: “From what we know. you have made great progress in the negotiations, we will keep you posted.” However, doubts are beginning to settle in Seco at the start of last week. Several signals suggest that everything does not go as planned.

Customs duties: karin keller-sutter center

The failed telephone call

Karin Keller-Sutter then wants to be clear. insists on having another telephone interview with Donald Trump. The appointment takes place on July 31 at 8 p.m. Swiss time. The Americans keep the Confederation president to wait for ten customs duties: karin keller-sutter center minutes. The beginning of the conversation is courteous, we exchange politeness and kks speaks of national holiday, which dates back to 1291. It is then a rather bad mood trump that enters the heart of the matter. He clearly explains that with a trade deficit of $ 39 billion. caused by 9 million Swiss, a customs duty of 10 percent would be quite insufficient. Switzerland will therefore have to pay much more.

After that, it is only a question of this deficit. Karin Keller-Sutter tries to explain how we got there. The American president always reacts more violently to these explanations, which he deems “too moralizing”. Then he evokes customs duties greater than 30 percent. Karin Keller-Sutter, who then has no idea or mandate to offer anything more, tries to dissuade him. She also repeatedly recalls the agreement concluded by the negotiators.

This continues until 8:38 p.m.. when Helene Budliger receives an SMS from the entourage of Trump indicating that it is better to end the conversation before it degenerates completely. Two minutes later, the exchange is over and everyone understands that there is no agreement. It’s a fiasco. Kks then announced the failure on X and. two hours later, the news arrives from Washington: 39 percent of customs duties for Switzerland.

A too personal file?

How did we get there? Within the administration, Keller-Sutter is accused of having monopolized the file. She would customs duties: karin keller-sutter center have discussed the interview with Trump in a naive way. without plan B, without idea what she could offer her if things were going wrong. Admittedly. she did not have a mandate of the Federal Council but, precisely, one cannot approach an interview with Trump under these conditions, believe her detractors. The Seco must now resume the reins and start by taking stock of the situation. An extraordinary meeting of the Federal Council is scheduled for Monday, remotely via Threema.

A question arises now: what should we offer? Trump will not give in so easily. Rahul Sahgal, director of the Swiss Chamber of Commerce-States, believes that it would be wise to expand the negotiation mandate. Military cooperation should therefore be included. discuss the gold trade, which is responsible for a large part of the trade deficit. It actually does not bring a lot to customs duties: karin keller-sutter center Switzerland. which only re-entered the gold in ingots of one kilo so that it corresponds to the American weight-based system. This could easily be avoided by an export right or other measures. According to some information. Berne is ready to sacrifice the cast iron of gold if that facilitated the conclusion of an agreement with the United States.

Another problem is that of the pharmaceutical industry. that is to say Roche and Novartis, whose Americans are constantly talking about. Paradoxically, it has so far been exempt from customs duties, as is the gold trade elsewhere. For pharmaceutical products, the reason is as follows: drug prices are included in the American price index. If Trump imposes customs duties on these products. it will not only cause an increase in health costs, but also an increase in inflation, which it should avoid at all costs.

Customs duties: customs duties: karin keller-sutter center karin keller-sutter center

US additional requirements

And if Trump asks that drugs are cheaper. this is the responsibility of the pharmaceutical industry. Another measure is the responsibility of the Confederation: the suspension of minimum OECD taxes. which irritates American companies with their headquarters in Switzerland. Since it is clear that Singapore has not applied them more than the United States. it is in fact more than a minimum tax of the EU, which Switzerland also conforms.

If this tax is implemented, American companies will withdraw, estimates Mr. Sahgal, who therefore urges the Confederation to act urgently. There is another reason why this tax provokes a conflict with the United States: when a Swiss company benefits from a temporary special rate of 9% for the implementation of production sites. as is often the case, the Swiss customs duties: karin keller-sutter center State receives the difference of 6% compared to the minimum tax. What the Americans do not accept either.

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