Swiss CEOs Lead Breakthrough Push in Tariff Talks with Trump Administration

Switzerland has moved closer to securing a trade agreement with the United States, driven by an unprecedented push from the nation's top corporate executives, breaking a months-long diplomatic deadlock.

Following months of stalled negotiations, numerous Swiss company chiefs have actively travelled to Washington to advance the talks. According to multiple informed sources, Switzerland is approaching a scenario where US tariffs on its goods would be reduced to 15 per cent. This would align future US tariffs on Swiss imports with those levied by the European Union. While some observers believe a deal could be concluded within weeks, others caution that the rapidly evolving situation may prolong discussions.

On 10 November, US President Donald Trump stated that he had not yet finalised the tariff rate for Switzerland but confirmed his administration was exploring a deal that could lead to a slight reduction.

Business Takes the Lead

After setbacks and a prolonged diplomatic impasse, Swiss business leaders have taken a direct role, shifting from behind-the-scenes lobbying to direct engagement with the Trump administration. The impetus for this move stems from the 39% tariffs the US imposed on most Swiss goods in August – currently the highest rate faced by any developed economy.

The Swiss negotiating delegation, led by Federal President Karin Keller-Sutter, had initially believed an agreement was imminent to maintain tariffs around 10%. The White House's abrupt imposition of the 39% tariff rate therefore came as a shock.

The situation is critical for Switzerland, which has abolished all its own industrial tariffs, as the US remains its largest export market for goods including watches, chocolate, and machinery. President Trump has cited America's approximately $39 billion trade deficit with Switzerland as the primary justification for the high tariffs.

Tensions were further highlighted when Trump complained that President Keller-Sutter was 'unwilling to listen' to his grievances on the trade deficit, after which she referred the matter to Swiss Economic Minister Guy Parmelin.

According to individuals close to the negotiations, with official talks making minimal progress for months, the private sector has emerged as the driving force to break the deadlock.

Last Tuesday, a delegation of prominent Swiss business leaders met with President Trump at the White House. The group included Alfred Gantner, founder of Partners Group; Rolex CEO Jean-Frédéric Dufour; Daniel Jaeggi, head of commodities trader Mercuria; Johann Rupert, chairman of Richemont; Diego Aponte, president of Mediterranean Shipping Company; and Marwan Shakarchi, chief executive of gold refiner MKS Pamp.

Sources stated that the delegation emphasised the robust economic partnership between the two nations. President Trump later confirmed the meeting on social media, describing it as a 'great honour' and noting that US Trade Representative Gregg would engage in follow-up consultations.

Leveraging Traditional Strengths

Experts note that Switzerland's negotiation strategy leverages its traditional economic strengths. Simon Evenett, Professor of Geopolitics and Strategy at Lausanne's International Institute for Management Development (IMD), observed that Swiss exports constitute over 70% of its GDP. The country's global influence has long been driven primarily by its domestic enterprises rather than its political clout.

'It appears CEOs are more adept at getting to the heart of the matter than Swiss Federal Councillors... The Swiss are playing their strongest cards. The likelihood of reaching an agreement next year remains greater, which is a positive signal,' Professor Evenett remarked.

Rahul Sahgal, Chief Executive of the American Chamber of Commerce in Switzerland, suggested that the newly appointed US Ambassador, Callista Gingrich – wife of former US House Speaker Newt Gingrich – may also inject momentum. However, he noted that 'the situation remains unclear, and meetings with business leaders serve to complement the Swiss government's efforts'.

Zhao Yongsheng, Director of the French Economic Research Centre at the University of International Business and Economics, commented that Switzerland had deployed an 'unconventional tactic', recognising that President Trump is a proponent of business principles. He stated that Switzerland has consistently navigated diplomacy between major powers with dexterity and that, given the absence of irreconcilable conflicts, it is plausible the tariff rate could ultimately be set at 15%, mirroring the EU's rate.

The Gold Factor and Trade Deficit Dispute

President Trump has attributed the 39% tariff primarily to the bilateral trade deficit, describing it as a 'significant figure'. However, the Swiss side contends that the US has overlooked the services trade.

Data from the Office of the United States Trade Representative shows the US goods trade deficit with Switzerland stood at $38.3 billion in 2024, an increase of $13.8 billion or 56.1% compared to 2023. Concurrently, the US holds a $29.7 billion surplus in services trade with Switzerland.

A key sticking point concerns the Swiss gold refining industry. While a relatively small part of Switzerland's economic output, these enterprises account for a significant portion of the bilateral goods trade deficit. Swiss gold exports surged substantially earlier this year, partly due to US investors rushing to purchase gold ahead of tariff implementation – a development that drew particular US attention.

It is reported that some Swiss companies have proposed investing in the US gold refining industry as one measure to persuade the Trump administration to reduce import tariffs.

Zhao Yongsheng observed that the Trump administration is using the pretext of trade imbalances to impose tariffs while simultaneously seeking increased Swiss investment in the US, with the scale of such investment highly correlated with the US-claimed trade deficit.

Potential Davos Announcement

According to an informed source, Switzerland is highly likely to announce an agreement with the US at the World Economic Forum in Davos in January 2026. President Trump is expected to attend the forum.

Historically, few US presidents or senior officials have attended Davos. However, Mr Trump has shown a preference for such events; shortly after taking office in January this year, he delivered a video address to the 2025 World Economic Forum Annual Meeting, during which he had already issued tariff threats against products not manufactured within the United States.