Just 18 hours after the United States imposed crippling tariffs on Switzerland and the rest of the world, Donald Trump has decided to suspend the most severe tariffs on all nations barring China. Now, in a piece in the Washington Post, it’s claimed that a call with the President of Switzerland, Karin Keller-Sutter, was one of the key reasons the president changed his mind.
Late on April 9, Donald Trump confirmed a 90-day suspension of the tariffs he announced at the beginning of the month. With the notable exception of China - which at the time of writing has its tariffs set at 125 percent - all goods imported to the United States from other countries will now be charged a base tariff of 10 percent, instead of the far higher so-called "reciprocal tariffs". Additional 25 percent tariffs on car, steel and aluminium imports will also remain.
These reciprocal tariffs, announced on what the president called “Liberation Day”, saw Switzerland slapped with a 31 percent tariff on all exports to the US. It later transpired that the rate was based on the US trade deficit with Switzerland, as the Swiss government charges no import tariffs on American industrial goods.
Faced with the highest US tariffs in a century, markets around the world were sent into a tailspin. So, just 18 hours later and with US bank JP Morgan predicting a global recession as more likely than not, Trump announced a pause on most of the high tariffs. Writing on Truth Social, the president explained that this was because “more than 75 countries” had chosen not to retaliate with tariffs of their own, and had displayed a willingness to negotiate.
In a piece in the Washington Post, it’s claimed that Donald Trump’s phone call with Swiss President and Finance Minister Karin Keller-Sutter (FDP) was one of the key factors which convinced him to U-turn. Officially, Trump claims that he made the final decision to pause the tariffs on the morning of April 9 - he took Keller-Sutter’s call at 9am Washington time.
The Washington Post claims that in the 25-minute conversation, Keller-Sutter highlighted that "Rolex watches and chocolate were hit with a 31 percent tariff overnight". She urged the president to scrap the tariffs, which she said would hurt the Swiss economy as America is the country’s biggest single trade partner. Last year, a fifth of all exported goods from Switzerland ended up in the US, totalling 53 billion francs.
According to the Federal Department of Finance, Keller-Sutter went on to highlight the unfairness of the tariffs and the central role Swiss international companies play in investing and creating jobs in America. By global comparison, Switzerland invests the sixth largest amount in the US as a whole, and the most in research and development thanks to projects related to medicine and pharmaceuticals.
In the Post’s view, Keller-Sutter’s call, as well as pressure from government officials, banks and investment firms, were the main reasons Trump suspended the tariffs.
Speaking to reporters on April 10, Economics Minister Guy Parmelin (SVP) said the “Federal Council is working tirelessly for Switzerland and its people – nothing more, nothing less." He noted that the entire government was committed to dialogue with the United States and to reaching a deal to prevent future tariffs.
Parmelin said that it cannot be ruled out that Keller-Sutter’s influence was the push that set events into motion, adding that the “call was part of the whole thing”. However, he also noted that most heads of state were trying to get on the phone with Trump at the height of the crisis.
Nevertheless, he argued that the fact that the American media highlighted Switzerland's role in averting the economic crisis shows the power the country has. Looking ahead, Parmelin said that "10 percent is better than 31 percent. The Federal Council is pleased with this relief," but admitted that the uncertainty caused by the constant changes in policy was damaging the Swiss economy.
It remains to be seen whether Switzerland will reach a deal with the United States on trade, whether the 31 percent tariff will resume when Trump’s pause ends in July, or whether something new, unknown and uniquely damaging emerges from the White House.
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