Swiss President Karin Keller-Sutter is facing backlash after trade talks with Washington collapsed following a “disastrous” phone call with US President Donald Trump, the Financial Times has reported, citing sources familiar with the matter.
Trump announced a 39% levy – one of the highest globally – on Swiss goods on Friday, coinciding with Switzerland’s national day.
According to an FT report published on Sunday, Swiss negotiators believed they had secured a provisional deal for a 10% tariff, similar to the UK’s arrangement. In exchange, Bern pledged nearly $150 billion in US-bound investment and remained in regular contact with US Trade Representative Jamieson Greer. The offer was approved in early July, with Swiss officials convinced it only awaited Trump’s signature.
Keller-Sutter, who also serves as finance minister under the Swiss rotating presidency, had publicly stated last month that she had gained rare “access to Trump.” However, during a 30-minute call on Thursday – described by sources as “disastrous” – the US leader reportedly rejected the offer and instead focused on Switzerland’s $39 billion trade surplus.
“The call did not go well, in the sense that from the very first minute Trump made it clear 10% was not enough, and all he could focus on was Switzerland stealing money from the US. There was nothing Keller-Sutter could say,” one source told the FT. Trump reportedly asked what more the “very wealthy” Alpine country could offer.
Swiss media called the outcome Keller-Sutter’s “biggest fiasco,” with tabloid Blick likening it to the country’s worst defeat since 1515, when Swiss troops lost to France at the Battle of Marignano.
Greer later denied that a final deal had been secured, telling Bloomberg: “Nothing is agreed until everything is agreed.”
The tariff hike followed Trump’s ‘Liberation Day’ speech on April 2 announcing a global trade overhaul. After multiple delays and a series of negotiations, a revised executive order signed last week adjusted rates based on “trade imbalances,” with the tariffs now set to enter into force on August 7.