Kriti Gupta, host of Bloomberg’s ‘The Opening Trade,’ breaks down the latest in trade talks between the US and Switzerland.
The Swiss government said it is determined to win over the US on trade after last week’s shock announcement of 39% tariffs on exports to America.
“Switzerland enters this new phase ready to present a more attractive offer, taking US concerns into account and seeking to ease the current tariff situation,” it said in a statement on Monday, highlighting its foreign direct investments and research and development push in the US. It also excluded countermeasures for the time being.
With the new levies — the highest among industrial nations — scheduled to go into effect on Thursday, President and Finance Minister Karin Keller-Sutter convened an emergency meeting of the governing Federal Council to discuss how to proceed.
Negotiators with the Swiss State Secretariat for Economic Affairs have already reached out to their US counterparts to try and find a way forward. Bern is focusing on getting at least a longer timeline than Thursday, according to an official close to the talks, adding that anything improving the current situation would be a win.
Washington’s move came as a surprise as talks ahead of the Aug. 1 deadline had looked promising. A Thursday night call instead focused on Switzerland’s trade surplus in goods with the US.
The Swiss government stressed on Monday that the overhang “is not the result of any ‘unfair trade practices’.”
Switzerland’s outsized gold exports are partly to blame for the distorted trade balance. The country is the world’s biggest refining hub for the precious metal, with billions of dollars worth of gold constantly flowing into and out of the nation.
Pharmaceuticals, coffee and watches are the other main drivers.
Keller-Sutter, who was criticized in the Swiss press over the weekend for allowing Trump to blindside her without a backup plan, said she would be willing to make a last-minute trip to Washington if she thought there was a chance a deal could be made.
“I don’t rule out such a visit, but first, the two sides should come closer together in their positions,” she told the newspaper Schweiz am Wochenende. It’s not clear what, if any, response there has been from the US government.
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