Switzerland, hit by a 'tariff bomb' without knowing the details, seeks to appease Trump

Willingness to Revise 39% High Tariffs

Switzerland has expressed its willingness to revise the existing negotiation plan to avoid the 39％ high tariffs announced by U.S. President Donald Trump. On the 3rd (local time), Reuters reported that Swiss Economy Minister Guy Parmelin stated in an interview with RTS that a special federal cabinet meeting would be held on the 4th to discuss countermeasures. Minister Parmelin commented on the 39% tariff decision, saying, "We need to fully understand why the U.S. President made such a decision" and "Once that is clarified, we will be able to decide what to do next."

He added, "Time is short, and it may be difficult to accomplish something by the 7th (the date for mutual tariff implementation), but we will do everything possible to show goodwill to the United States and amend our proposal." Minister Parmelin also mentioned additional options such as promising to purchase U.S. liquefied natural gas (LNG) and expanding Swiss corporate investment in the United States.

Previously, reports emerged that President Trump was 'furious' at what he considered Switzerland's lack of 'sincerity' in addressing the trade imbalance with the U.S., and as such, imposed a 39% high tariff on Swiss goods. President Trump claimed to Swiss President Keller-Sutter that Switzerland, which records an annual $40 billion (around ₩56 trillion) surplus with the U.S., was essentially stealing America's money and demanded measures to resolve this. When President Keller-Sutter failed to comply with his demands, reports said Trump became enraged.

A few hours after the two leaders’ call ended, the U.S. announced that, starting August 7, a 39% mutual tariff rate would be applied to goods from Switzerland. Unlike most countries, which succeeded in reducing tariffs somewhat through negotiations with the U.S., Switzerland, after its initial announcement of 31％ in April, saw the rate rise by 8 percentage points. The U.S. is the largest export market for Swiss watches, pharmaceuticals, and machinery, raising concerns of severe economic impact.

Minister Parmelin acknowledged that the call between the two leaders was not successful but clarified, "There was no argument between the leaders. President Trump had a completely different perspective from the outset." The White House press office did not immediately respond to Bloomberg’s request for comment regarding this matter. However, a White House official, speaking on condition of anonymity, said that the result of the call was due to Switzerland's refusal to make meaningful concessions on trade barriers and noted that it would be impossible to reach an agreement on major items without concessions from such a wealthy country.

Kim So-yeon Hankyung.com Reporter sue123@hankyung.com