Switzerland asserts economic strength ahead of U.S. tariff talks

Switzerland’s top officials are expected to determine whether big commitments to the U.S. can help secure relief from Trump’s trade policies. Top companies like Novartis and Roche have started revealing their commitments to the U.S. in a bid to mitigate Trump’s tariffs

Roche’s announcement yesterday came a day before Swiss Finance Minister Karin Keller-Sutter and Economy Minister Guy Parmelin led a delegation on a three-day visit to Washington. The Swiss officials are planning to establish how important Swiss business is to the U.S. as they seek to persuade President Donald Trump not to hit the country with tariffs.

Swiss firms offer economic commitment to the U.S.

Deputy chair of the Lower House Foreign Relations Committee, Sibel Arslan, noted that Switzerland was shocked by the tariffs initially set significantly higher than those for the European Union. Arslan also mentioned broad support in the Swiss parliament for officials to show how many billions Swiss companies invest now and will do in the future. “This is the only way. Now we’ll have to see whether the strategy comes off,” he added.

Klaus Stoehlker, a Zurich-based public relations consultant, argued the Swiss delegation was on a “journey of hope” in Washington despite the difficulty allies of Trump have had in steering him away from tariffs.

“Economically speaking, Switzerland is part of the U.S. They’re not going to break this Swiss golden egg.”

-Klaus Stoehlker, public relations consultant.

Swiss officials were also shocked after the U.S. announced its import duties since it abolished its own industrial tariffs last year. One prominent Swiss lawmaker said Switzerland should tell Trump it would invest $100 billion during his term. Considering Basel-based Roche and Novartis’ latest commitments, the Swiss officials arrive in Washington ready with hefty investment pledges.

Big pharma giant Novartis first announced a planned $23 billion investment over 5 years in the U.S.-based infrastructure on April 10. The firm acknowledged that its initiative will enable it to expand its current manufacturing, research, and technology presence nationwide with 10 facilities, including 7 new ones. Novartis also maintained that its commitment will create nearly 1,000 new jobs at the firm and roughly 4,000 additional U.S. jobs.

Roche also followed its pharma rival Novartis by announcing on April 22 a $50 billion investment in the U.S. over the next five years. The firm expects to create more than 12,000 new jobs, including nearly 6,500 construction jobs, as well as 1,000 jobs at new and expanded facilities. The pharma giant already has 12 manufacturing and 15 R&D sites across the pharmaceutical and diagnostic divisions.

Pharma giant Roche maintained that its investment was aligned with the government and part of ongoing discussions between Switzerland and the U.S. engineering group ABB and Chocolate maker Barry Callebaut is among the seventh-biggest foreign investors in the U.S. to make commitments from Switzerland.

Switzerland shows financial muscle amid tariff date in Washington

Switzerland has cautioned the Trump administration not to take its financial muscle for granted despite all the U.S. economic commitment demonstrated by Swiss firms. Swiss Economy Minister Parmelin warned the country could work against the U.S. if it led to companies putting “brakes on certain investments.” Arslan also acknowledged that Switzerland, whose export-oriented economy is bigger than that of many much larger countries, should not accept being taken advantage of.

Keller-Sutter had a telephone conversation with Trump hours before he imposed a 90-day pause on his original tariffs. The pause also cut Switzerland’s 31% trade levy to 10%, which is now applied to most countries. 

Keller-Sutter has yet to meet U.S. Treasury Secretary Scott Bessent on her Washington visit, which will take place during the World Bank and International Monetary Fund Spring meeting.

Data from the World Bank showed that Swiss GDP per capita was around $100,000 in 2023, roughly 20% higher than the U.S. The country is also home to roughly three times as many Fortune Global 500 companies per capita as the U.S.

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