In the trade war initiated by Trump, according to tariff figures, the country that suffered the highest tariff rate, aside from China and India, was Switzerland. Due to dissatisfaction with Switzerland's long-term trade advantages over the US, Trump raised the tariff rate to 39%. This move not only shocked Switzerland but also surprised the whole world. Due to its reliance on the US market, the Swiss government approached the US for negotiations. After months of stagnation and diplomatic deadlock, Switzerland saw a glimmer of hope for reaching a tariff agreement with the US. Rumors suggest that the US might lower the tariff on Switzerland to 15%, and Trump has admitted that he was too harsh on Switzerland.

The Swiss government couldn't handle Trump, so the business community stepped in

Interestingly, representatives from other countries negotiating tariffs with the US are usually high-level government officials, but Switzerland is a special case. The Swiss government couldn't handle Trump, and it was ultimately the business leaders of the country who intervened to break the deadlock between the two nations!

When Trump launched his "reciprocal tariff war" against the world in April this year, Switzerland was targeted because of its $39 billion trade surplus with the US. After the tariff buffer period ended, Switzerland directly faced a heavy 39% tariff.

According to the Financial Times, due to its high dependence on the US market, after the announcement of the 39% tariff, almost all criticism in Switzerland pointed at the current chairperson of the Federal Council, Karin Keller-Sutter. Under this background, she had to do her best to negotiate with the US, but official negotiations often fell into a deadlock. At this time, the Swiss business community began to step in.

Because the 39% tariff that Switzerland is facing is currently the highest among developed countries, these major Swiss companies that rely heavily on multinational markets have clearly felt the pressure brought by Trump's high tariffs. Leaders of Rolex, Richemont (the parent company of Cartier), and others came forward to lead the way, directly going to Washington to meet with Trump himself. They used the language familiar to business leaders to gradually persuade Trump, hoping that Switzerland could be treated like the EU with a 15% tariff rate.

Rolex leads, multiple Swiss companies go to the White House

It must be said that the involvement of the Swiss business community indeed had an effect. On November 10, Trump admitted that he had been too harsh on Switzerland, and both sides were negotiating to reduce the tariff. How did they negotiate? On November 10, the UK's Daily Telegraph revealed the process of the Swiss business leaders' negotiation with Trump. The delegation included six prominent global corporate executives, including Dufour, the head of Rolex, and Rupert, the chairman of Richemont. When they met with Trump at the White House on November 4, they presented him with a Rolex watch and a custom gold bar. The Rolex watch would be donated to Trump's presidential library, and in the letter they sent to Trump, they emphasized their friendship with the US and expressed gratitude through these gifts.

These Swiss business leaders also promised to reduce the trade deficit between the US and Switzerland over the next 5 to 7 years and proposed to transfer their gold refining operations to the US within the next 12 to 24 months. Both sides also discussed pharmaceutical investments in the US and increasing the purchase of American aircraft.

Several people who attended the briefing revealed that the Swiss business delegation's negotiations were effective, and they were close to obtaining a 15% tariff rate. However, Trump himself did not confirm this news, only admitting that he had been too harsh on Switzerland and that both sides were negotiating to reduce the tariff. At the same time, Trump further requested the trade representative Griles to strengthen direct negotiations with Switzerland, striving to reach a tariff agreement.

Swiss economist Yvonne Rüegg said: This method of trade negotiation better aligns with Switzerland's traditional strengths. In fact, Switzerland's global influence mainly relies on its domestic corporate giants, rather than the political weight of the Swiss government.

Swiss companies enter the White House to give watches and gold bars

As for when the US and Switzerland will reach a tariff agreement, the Swiss business delegation has different opinions. Some expect a consensus to be reached in the coming weeks, while others are not optimistic, believing that the current situation still has many variables, and the US-Switzerland negotiations may continue for a longer time. Trump is likely to visit Switzerland for the Davos Economic Forum in January next year, and it is possible that the US and Switzerland will reach an agreement at that time, which Trump will announce.

Original: https://www.toutiao.com/article/7571699708662399551/

Statement: This article represents the views of the author, and we welcome you to express your opinion below using the [top/beat] buttons.