Swiss Leader Rushes to US for Last-Minute Talks

Swiss President Karin Keller-Sutter is making a dash to Washington, hoping to avert a 39% tariff on Swiss goods that's rattled her country's export-heavy economy. The surprise levy, one of the highest globally, was announced by President Trump and threw a wrench into negotiations where Swiss officials thought a friendlier deal was close. Keller-Sutter, joined by Economy Minister Guy Parmelin, is seeking last-minute talks with US authorities, the Wall Street Journal reports. The goal: pitch a "more attractive offer" and convince Washington to ease the tariffs, which target Swiss exports like watches and chocolate.

The stakes are high—about 20% of Swiss exports head to the US, making it Switzerland's second-largest trading partner, after the European Union. The tariffs due to kick in Thursday, Swiss officials warn, would put them at a sharp disadvantage compared to the EU, UK, Japan, and South Korea, which recently secured lower rates with Trump. Trump's justification? A large US trade deficit with Switzerland, despite the fact that 99% of American goods now enter Switzerland duty-free.

The steep tariff was announced after a phone call between Keller-Sutter and Trump last week that Swiss media described as "disastrous." "The woman was nice, but she didn't want to listen, and they paid essentially no tariffs," Trump told CNBC on Tuesday. "We don't lose—because I view deficit as loss." He said he told her, "We have a $41 billion deficit with you, Madame." It's not clear whether he got $41 billion from, the AP reports. The US Census Bureau says the trade imbalance was $38.3 billion last year, not including exports of services.

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Switzerland has floated ideas echoing EU tactics, such as boosting purchases of American liquefied natural gas and investing more in the US. The EU, for example, locked in a deal involving $750 billion in US energy buys and hefty additional investment. Previous talks saw Switzerland offering $150 billion in US investments, but Keller-Sutter reported a deadlock after her call with Trump.