Swiss President Karin Keller-Sutter is facing increasing criticism after a ‘disastrous’ phone call with US President Donald Trump derailed months of trade negotiations, according to the Financial Times. The call reportedly led to Trump imposing a 39% levy on Swiss goods, much higher than the expected 10%. The move came just days after Switzerland’s national day, adding to the political tension.
Swiss negotiators had initially believed they had reached an agreement for a 10% tariff, similar to the UK’s arrangement, with the Swiss government pledging nearly $150 billion in US-bound investment. However, the call with Trump, which lasted 30 minutes, saw the US president reject the offer and instead focus on Switzerland’s $39 billion trade surplus. Sources described the call as a significant misstep, with Trump reportedly questioning what more the wealthy Alpine country could offer.
The tariff hike came after Trump’s ‘Liberation Day’ speech on April 2, in which he announced a global trade overhaul. A revised executive order signed last week adjusted tariff rates based on ‘trade imbalances,’ setting them to enter into force on August 7. The Financial Times has reported that the call between Keller-Sutter and Trump is seen as a critical turning point in the trade negotiations, with Swiss media criticizing the outcome as one of the country’s biggest fiascos.
US Trade Representative Jamieson Greer later denied that a final deal had been secured, stating, ‘Nothing is agreed until everything is agreed.’ The situation has raised concerns over the impact on Switzerland’s economy and trade relations with the US, highlighting the challenges of navigating international trade under Trump’s administration.