Swiss president Karin Keller-Sutter and the Minister of the Economy Guy Parmelin flew to Washington on Tuesday, the government announced, in a final attempt to avoid the entry into force of customs duties of 39% announced by President Donald Trump on Swiss exports to the United States.
These American prices, noted compared to the initial rate of 31% announced in April, have caused a shock wave in Switzerland since their announcement last Friday.
The increase in rights is to come into force this Thursday.
During their visit, Keller-Sutter and Parmelin will “facilitate meetings with the American authorities in the very short term and conduct discussions to improve the tariff situation for Switzerland,” said the government.
No details were given on the American interlocutors encountered in Washington, or on the possible outfit of an appointment with Donald Trump.
A source close to the circles of the Trump administration said it was confident that an agreement could be reached with Switzerland if it responded quickly with a more advantageous proposal.
“There has been a bad interaction, but it can work out if the Swiss arrive with a significant offer,” said this source, referring to a telephone interview between Trump and Keller-Sutter on Thursday evening.
“The trade deficit is important, especially in terms per capita,” she added.
Trump spoke of his conversation with Keller-Sutter in an interview with CNBC on Tuesday, expressing his concern about the American trade deficit with Switzerland.
“Listen, I did something with Switzerland the other day,” he said about his phone call with Keller-Sutter. “The lady was sympathetic, but she didn’t want to listen, and they practically no customs duties,” he said to the chain.
“And I said, we have a deficit of $ 41 billion with you, Madame … and you want to pay 1% customs duties. I said, you will not pay 1%, we lose, because for me, a deficit is a loss. »»
Emergency meeting
The Swiss government held an emergency meeting on Monday to decide its response to the increase in customs duties, and said it was ready to make a “more attractive offer” in the United States.
He also said he was ready to continue negotiations beyond the deadline of August 7.
Bern did not specify what additional incentives could be proposed to achieve better agreement, but said that no retaliatory measure against the United States was envisaged.
Parmelin has already mentioned the possibility that Switzerland is buying more of the American liquefied natural gas (LNG), while new Swiss investments in the United States could also be studied.
The objective of moving Keller-Sutter and Parmelin is to present “a more attractive offer in the United States in order to reduce the level of reciprocal customs duties on Swiss exports, taking into account American concerns,” the government said on Tuesday.
Some Swiss business leaders, including Nick Hayek, CEO of Swatch Group, called Keller-Sutter to go to Washington to negotiate directly with Trump.
A 39% commercial obstacle would be a blow for the Swiss economy, very exported, by reducing access to its main foreign market for its watches, machines and chocolates, have warned economists.
Hans Gersbach, economist at KOF Swiss Economic Institute of ETH Zurich, believes that the Swiss delegation will have to make a substantial proposal to obtain a reprieve in the face of 39%tax, this visit representing the last chance to negotiate this right of import.
“A marginal proposal will not be enough – it will take a significant figure, which Trump can present to his supporters as a victory for his negotiations,” said Gersbach.
“It is crucial that Keller-Sutter and Parmelin meet Trump and speak directly with him. He is the decision maker, ”he adds, believing that there is a reasonable chance of success.
The Swiss government is aware of the severity of the situation and is doing everything to achieve an agreement, he says.
“A 39% customs right on Switzerland, especially while the EU has obtained a rate of 15%, would be an immediate shock for the Swiss economy,” concludes Gersbach.
