Politicians have also openly talked about exiting the fighter jet deal with the US. The US also seems to recognise that Switzerland does have something to offer. The Confederation is now in a group of 15 countries with which Washington wants to conclude a trade agreement as a matter of priority. Berne could sweeten the deal with more direct investments by Swiss companies in the US worth about 150 billion Swiss francs, about half of which would come from Novartis and Roche. Avocados and almonds as bargaining chips Switzerland could also cultivate goodwill through closer cooperation in developing the apprentice system in the US. Trump just recently announced a vocational educational initiative. At the same time, the negotiations are about duties and non-tariff barriers such as quotas, subsidies, taxes and trade in goods. Keller-Sutter would like to do away with the baseline tariff, which still applies during the 90-day grace period. That almost certainly entails the Federal Council making concessions in agriculture. The Confederation sees room for negotiation with such products as almonds or avocados, which are not grown in Switzerland. The next step is a joint declaration of intent, which was still pending by our editorial deadline at the end of May. After that comes the negotiation phase. At least, that’s how it looks now, but given the many turns and surprises provided by the White House to date, maybe the only real certainty is that nothing is certain. adopted a federal structure, it applied central US concepts, including human rights and the parliamentary two-chamber system. However, when it comes down to it, these similarities in statehood and personal responsibility are largely irrelevant. All the US is really interested in is having the power to enforce its interests unrelentingly. This was evident after the Second World War when Washington coerced Switzerland into paying compensation for its dealings with Nazi Germany. In the 1990s, the Confederation again found itself in the firing line due to unclaimed assets and Nazi gold. Under strong international pressure, UBS and Credit Suisse agreed to compensate Holocaust victims or their descendants to the tune of 1.25 billion dollars. The US also read the riot act to the Swiss over banking secrecy laws: in 2008, Switzerland was obliged to relax its banking secrecy and deliver the names of thousands of suspected tax evaders to the Internal Revenue Service (IRS). Keller-Sutter’s telephone call with Trump Every time, Switzerland has managed to come to terms with pressure from its big sister across the ocean. And it may well do so again this time. The US is Switzerland’s biggest export market, bigger even than Germany. Moreover, Berne has now established a line to the White House, after having initially been assigned to the underlings in Washington. In a telephone call with Trump, President of the Confederation Keller-Sutter offered some incentives to take the edge off the trade dispute. Shortly afterwards, Trump announced that the duties would be suspended for 90 days for all trading partners. An article in the “Washington Post” fed speculation in the Swiss media about Keller-Sutter having played a part in Trump’s decision. The article said that she had explained the consequences of the tariffs and prompted him to think again. This also added credence to the idea of the special relationship with the US. Despite the power imbalance, Switzerland does not just want to play the part of supplicant to Trump. After all, he has been known to mock foreign politicians if they beg for a deal. The president only recognises strength and despises weakness. Switzerland has its trump cards: Swiss companies are the fourth biggest foreign investor in industrial production and the number one for research and development (R&D). Economics Minister Guy Parmelin and President of the Confederation Karin Keller-Sutter on the day of the tariff announcements. Their expressions reflect the consternation in Berne. Photo: Keystone Donald Trump named the day of his tariff announcements “Liberation Day”. Having initially taken a surprisingly hard stance towards Switzerland, he has since indicated he is prepared to discuss the situation. Photo: Keystone Swiss Review / July 2025 / No.3 15
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