Switzerland is preparing a new trade offer to reduce U.S. tariffs, likely including higher defense spending and expanded access for American energy interests.
The move follows President Trump’s 39% tariff, one of the highest globally, which drew sharp protests from Swiss President Karin Keller-Sutter. Since the 39% tariff took effect Aug. 7, Swiss officials have been working with industry to draft concessions that could lower it closer to the 15% rate Trump set for the EU. Treasury Secretary Scott Bessent is pushing to finalize deals by October.
Switzerland’s offer includes buying more U.S. defense equipment, increasing LNG imports, and expanding market access in other areas, sources said. The Swiss economy ministry confirmed talks are ongoing, stressing its commitment to easing tariffs with Washington.
After meeting Secretary of State Marco Rubio, Swiss officials pledged to boost defense cooperation, with measures like importing more planes under review to cut the U.S. deficit. Before Trump’s July 31 call with President Keller-Sutter, Switzerland had hoped for a deal better than the EU’s, citing strong U.S. investment ties. Instead, Trump said Keller-Sutter “didn’t want to listen” to his deficit concerns, sparking criticism at home over her handling of the call.
UBS reported that by the end of Q2, Switzerland had erased its goods deficit with the U.S. following Trump’s April tariffs. Keller-Sutter said she told Trump the levies were unjustified and that America benefits from strong trade ties with Switzerland. Some Swiss officials had worried that tensions between Trump and Keller-Sutter could hinder the new trade deal.
Green Party lawmaker Nicolas Walder accused the Swiss government of being complacent and inflexible with Trump, noting officials focused only on cutting his proposed 31% tariff in April and had no plan B when it later rose to 39%.
“They said: ‘It has to work. He will understand.’ They were sure they could make him change his mind,” he said.
Swiss companies like Victorinox have warned they may move production to the U.S. to avoid Trump’s tariffs. Without stronger alliances in Europe and beyond, Switzerland faces a precarious position, Walder said.
“Because if Trump is successful, the second-strongest will use the same methods,” he said. “Why wouldn’t China and the European Union do the same towards smaller countries?”
