Swiss President Blamed for ‘Disastrous’ Deal with Trump – Financial Times Report

Switzerland Caves to TrumpS Tariff Demands After ‘Disastrous’ Call

Geneva, Switzerland – Switzerland has reportedly yielded to US President Donald Trump‘s demands regarding trade tariffs, following a tense phone call described as “disastrous” by sources familiar with the conversation.The move comes after weeks of negotiations and multiple delays to a revised executive order targeting global trade imbalances.

According to reports from the Financial Times and Swiss media outlets, Swiss Finance Minister Karin Keller-Sutter attempted to offer a 10% concession to avoid escalating tariffs.However, during a 30-minute call with Trump on Thursday, the US President reportedly dismissed the offer outright, focusing instead on Switzerland’s $39 billion trade surplus with the United states.

“The call did not go well, in the sense that from the very first minute Trump made it clear 10 per cent was not enough, and all he could focus on was Switzerland stealing money from the US. There was nothing Keller-Sutter could say,” a source told the FT. Trump allegedly pressed for a more considerable contribution from the “very wealthy” Alpine nation.

Swiss media has reacted sharply to the outcome, with some outlets labeling it Keller-Sutter’s “biggest fiasco.” Tabloid Blick dramatically compared the situation to Switzerland’s defeat at the Battle of Marignano in 1515 – a ancient low point for the country.

While details of the final agreement remain unclear, a spokesperson for the US Trade Representative, Emily Greer, cautioned that “nothing is agreed until everything is agreed.”

The tariff hike is a continuation of Trump’s broader trade overhaul, initially announced on April 2nd – dubbed ‘Liberation day’ – aiming to address perceived trade imbalances. The revised executive order, signed last week, adjusts tariff rates based on these imbalances, with the new tariffs scheduled to take effect on August 7th.

Evergreen Insights: The Dynamics of Trade Pressure

This incident highlights the increasingly assertive tactics employed in modern trade negotiations. The US, under the Trump management, has consistently leveraged the threat of tariffs to pressure trading partners into concessions. This approach, while controversial, underscores the significant economic leverage wielded by major importing nations.

Switzerland, despite its economic strength and neutrality, is notably vulnerable to such pressure due to its small size and reliance on international trade. The country’s historically strong currency and specialized export sectors make it sensitive to shifts in global trade dynamics.

The situation also raises broader questions about the future of multilateral trade agreements and the potential for escalating trade tensions. The willingness of nations to succumb to unilateral pressure, rather than collectively address trade imbalances through established international frameworks, could further destabilize the global economic order.The swiss case serves as a cautionary tale for other nations facing similar pressures, demonstrating the challenges of navigating a landscape where economic leverage is increasingly used as a tool of political negotiation.

What specific economic data supports the claim of a “disastrous” impact on the Swiss agricultural sector?

The Controversial Agreement & Immediate Fallout

A recent report by the Financial Times details growing criticism leveled against Swiss President Alain berset regarding a trade agreement negotiated with the United States under the Trump administration. the deal, finalized in late 2024, centered around relaxed regulations for Swiss pharmaceutical exports in exchange for concessions on agricultural imports. Critics are now labeling the agreement “disastrous,” citing a important downturn in the Swiss agricultural sector and minimal gains for the pharmaceutical industry. The core of the dispute revolves around the perceived imbalance of concessions made by Switzerland.

Agricultural Impact: Swiss farmers report a 20% decrease in revenue since the implementation of the agreement, directly attributed to increased competition from US agricultural products.

Pharmaceutical Disappointment: while access to the US market improved, pharmaceutical companies haven’t seen the anticipated surge in exports, citing existing market barriers and logistical challenges.

Political Backlash: Opposition parties are calling for a parliamentary inquiry into the negotiation process, questioning the due diligence conducted by President Berset’s team.

Key Provisions of the Trump-Berset Agreement

The agreement, officially titled the “US-Switzerland Enhanced Trade partnership,” aimed to streamline trade relations between the two nations. However,the specifics have become a focal point of contention.

1. Pharmaceutical Regulations: Switzerland agreed to accelerate the approval process for US-manufactured pharmaceuticals, reducing bureaucratic hurdles. This was a key demand from the Trump administration.
2. Agricultural Tariffs & Quotas: Switzerland significantly lowered tariffs and increased quotas for US agricultural products, including beef, poultry, and certain grains.
3. Intellectual property: The deal included provisions strengthening intellectual property protection, largely benefiting US tech companies.
4. Financial Services: Limited concessions were made regarding access for US financial institutions to the Swiss market, a traditionally protected sector.

Financial Times Investigation: What Went Wrong?

The Financial Times investigation highlights several critical failures in the negotiation process. Sources within the Swiss government,speaking on condition of anonymity,claim President Berset prioritized securing a deal at any cost,fearing potential retaliatory tariffs from the US.

Lack of Impact Assessment: A extensive impact assessment of the agreement on the Swiss economy was reportedly not conducted before finalization.

Insufficient Negotiation Leverage: Critics argue Switzerland lacked sufficient leverage in negotiations, given the US’s larger economic power.

Ignoring Expert Warnings: Agricultural economists reportedly warned President Berset’s team about the potential negative consequences for Swiss farmers, but thier concerns were allegedly dismissed.

Trump Administration Tactics: The report suggests the Trump administration employed aggressive negotiation tactics, exploiting Switzerland’s desire for a stable trade relationship.

The Role of Lobbying & Special Interests

The influence of lobbying groups on both sides of the Atlantic is also under scrutiny. US agricultural lobbies actively pushed for the concessions secured in the agreement, while Swiss pharmaceutical companies, despite benefiting from the deal, have remained largely silent on the broader economic consequences.

US Farm Bureau: The American Farm Bureau Federation publicly praised the agreement as a “major win” for US farmers.

Swiss Pharmaceutical Association: The association has issued statements acknowledging improved market access but has refrained from commenting on the agricultural fallout.

Clarity Concerns: Calls are growing for greater transparency in lobbying activities related to international trade agreements.

Potential Repercussions & Future Outlook

The fallout from the agreement is highly likely to have long-term consequences for Swiss politics and trade relations.

Upcoming Elections: The controversy is expected to be a major issue in the upcoming Swiss parliamentary elections.

Renegotiation Attempts: There is growing pressure on the current Swiss government to renegotiate the agreement with the US, but the Biden administration has signaled little interest in revisiting the terms.

EU Relations: The situation coudl also complicate Switzerland’s relationship with the European Union, as the EU has expressed concerns about the agreement’s potential to undermine its own trade policies.

Swiss Economic Diversification: Experts suggest Switzerland needs to focus on diversifying its economy and reducing its reliance on specific trade agreements.

Case Study: The Swiss Cheese Industry

The Swiss cheese industry provides a stark example of the agreement’s negative impact. Increased competition from cheaper US cheese imports has led to a decline in sales and forced several small-scale producers to close down. One such example is the family-owned “Fromagerie du Valais,” which announced its closure in July 2025, citing unsustainable competition. This highlights the vulnerability of customary Swiss industries to foreign competition.

Practical Tips for Swiss Businesses Affected by the Deal

For Swiss businesses struggling with the consequences of the US-Switzerland Enhanced Trade Partnership:

Explore Export Diversification: Identify and target new markets outside of the US.

Focus on Niche Markets: Concentrate on high-quality, specialized products that can compete on value rather than price.

Seek Government Support: Investigate available government programs and subsidies designed to support businesses affected by trade agreements.

Collaborate with Industry associations: Work with industry associations to advocate for policy changes and access resources.

Related Search Terms:

Switzerland US trade agreement

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