Swiss will try to negotiate way out of stiff US tariffs

This photograph shows blister packs of Swiss medications by Sandoz, shaping a Swiss cross, in Lausanne on August 1, 2025 as Washington said it planned to charge a 39 percent tariff rate on Swiss goods. (AFP)
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Updated 01 August 2025
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Swiss will try to negotiate way out of stiff US tariffs

  • The Swiss government said it remains in contact with US authorities and “still hopes to find a negotiated solution“
  • President Karin Keller-Sutter, who is also finance minister, spoke with Trump on Thursday

GENEVA: The Swiss government said Friday it would negotiate with the United States to try to avoid the tough 39-percent US tariff rate that would harm key industries.

As part of a slew of new tariffs unveiled late Thursday on nearly 70 countries, Washington said it planned to charge a 39-percent tariff rate on Swiss goods, higher than the 31-percent rate that it had been threatening to implement.

The new rate is set to go into effect on August 7, and would also prove painful for Switzerland’s manufacturing and watchmaking industries.

The Swiss government said it remains in contact with US authorities and “still hopes to find a negotiated solution,” in a statement on X.

“The Federal Council notes with great regret the intention of the US to unilaterally burden Swiss imports with considerable import duties despite the progress made in bilateral talks and Switzerland’s very constructive position,” it added.

Senior Swiss officials had held numerous discussions with their US counterparts in an attempt to reach a deal with the administration of US President Donald Trump, like Britain and the European Union have.

President Karin Keller-Sutter, who is also finance minister, spoke with Trump on Thursday.

“The trade deficit remains the center” of Trump’s preoccupation and they could not reach an agreement on a framework trade deal, she said on X.

The United States is a key trading partner for Switzerland, taking 18.6 percent of its total exports last year, according to Swiss customs data.

Pharmaceuticals dominated at 60 percent of Swiss goods exports to the United States, followed by machinery and metalworking at 20 percent and watches at eight percent.

The trade balance was heavily in Switzerland’s favor at 40 billion Swiss francs ($49 billion) last year.

Trump has paid particular attention to trade deficits, considering them a sign that the United States is being taken advantage of by its trading partners.

Switzerland is however the sixth country in terms of foreign direct investment into the United States, particularly in research and development.

Swiss pharmaceutical giants Roche and Novartis have both announced plans to invest tens of billions of dollars in the United States in the coming five years as they try to head off threats by Trump to impose separate tariffs of up to 200 percent on medicines if foreign drugmakers do not move more production into the United States.

The trade association representing the small and medium-sized firms in Switzerland’s machine and metal-working industry urged the government to take advantage of the negotiating window before the entry into force on August 7 of the new tariffs, which it warned would have serious long-term consequences.


Trump’s failed bid to elevate an Arab American ally shows cracks in his political coalition

Osama Siblani, Donald Trump, Bill Bazzi and Amer Ghalib. (Agencies)
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Trump’s failed bid to elevate an Arab American ally shows cracks in his political coalition

  • “President Trump has an incredible relationships with Arab leaders around the world,” White House spokesperson Anna Kelly said in a statement

WASHINGTON: When Donald Trump won his comeback campaign, he credited the mayor of a small Detroit suburb with helping him make inroads with Michigan’s Arab American community. As a reward, Trump nominated Amer Ghalib to serve as US ambassador to Kuwait.
But Ghalib is not on his way to the oil-rich nation in the Arabian Gulf. Instead, he is still in Hamtramck, population 30,000, after his nomination stalled because of opposition from Trump’s fellow Republicans.
It’s not clear whether the White House will submit Ghalib’s name again, and he said it does not matter either way: “I’m not interested in it anymore.”
The nomination’s unraveling has exacerbated tensions between Republicans and an Arab American community that, dissatisfied with Democratic President Joe Biden’s handling of the war in Gaza, helped send Trump back to the White House. Although Trump was successful in 2024, a key constituency may not be there for his party in the November midterm elections, when control of Congress is up for grabs.
“It’s hard for me to try and convince the community to vote again Republican in 2026 and 2028 with this kind of an atmosphere,” said Bishara Bahbah, who chaired Arab Americans for Trump.
Opposition on Capitol Hill
At the last rally of his campaign, in the predawn hours before polls opened, Trump embraced Ghalib on a Michigan stage. He called the mayor “one of the greatest men in your state.” It was a long way from eight years earlier, when Trump campaigned on a promise to ban Muslims from entering the United States.
Not only did Trump win Michigan, he earned strong support from Arab Americans. He even won Dearborn, where nearly half the city’s roughly 110,000 residents are of Arab descent.
But after Trump selected Ghalib for the diplomatic post, the reception on Capitol Hill was markedly colder.
“Your long-standing views are directly contrary to the views and positions of President Trump and to the position of the United States,” Sen. Ted Cruz, R-Texas, said at a hearing last year. “I for one, I’m not going to be able to support your confirmation.”
Cruz was joined by senators from both parties in questioning Ghalib about past comments and social media activity, including some that were labeled as antisemitic. Asked about “liking” a Facebook comment comparing Jewish people to monkeys, Ghalib said he had a “bad habit” of acknowledging nearly every response on his posts but stressed that he disagreed with the statement.
Sen. Jeanne Shaheen, D-N.H., asked Ghalib about a previous comment that allegations of sexual violence during the Oct. 7, 2023, attack by Hamas against Israel were untrue. Ghalib said he condemned all abuses but claimed that he had not seen the evidence himself.
He drew further scrutiny for describing former Iraqi leader Saddam Hussein as a martyr.
While no vote was taken after the hearing, the Republican opposition put Ghalib’s nomination on a near-certain path to failure.
“President Trump has an incredible relationships with Arab leaders around the world,” White House spokesperson Anna Kelly said in a statement. She added that he “continues to deliver on the promises he made to Arab Americans and all communities by cooling inflation, securing the border, and restoring peace through strength.”
’Widespread disappointment’
Another former mayor who helped Trump with the Arab American community, Bill Bazzi of Dearborn Heights, had more luck than Ghalib. He was sworn in as US ambassador to Tunisia in October.
To some critics, the administration is sidelining Arab American voices after highlighting them during the campaign.
Bahbah said he recently spent more than a week in Michigan absorbing a sense of “widespread disappointment.”
“First of all, many of the promises that were made to the community have not been fulfilled. That’s what I’m told,” he said. “Secondly, the whole issue of immigration and visas is really rattling the community. ICE (Immigration and Customs Enforcement) is rattling the community, even those with citizenships.”
To top it off, Bahbah said, people feel that “grocery bills are much higher than they used to be.”
Many leaders in Michigan’s Arab American community emphasized that Trump’s success had less to do with support for the Republican candidate than anger at Biden.
But the reality of Trump’s second term has been more complicated than some expected. An agreement intended to stop the war in Gaza has brought mixed reactions because it “seems to be a one-sided ceasefire,” said Bahbah. He also said immigration enforcement has taken a toll in Arab American communities.
“People are terrorized,” Bahbah said. “They’re afraid.”
“This is not what the community voted for,” he added.
A splintering coalition
Ghalib emphasized that he is not upset with the president, saying “he was loyal and supportive.”
But he said “those who opposed me for nonsense reasons have made the community upset, and they will have to work hard to restore their relationship with the community.”
Ghalib’s criticism of Republicans reflects the fragility of the coalition Trump assembled in 2024. Not only did he improve his standing with Arab Americans, he also increased his share of Black and Latino voters.
But with dissatisfaction on the rise, sustaining that support is proving difficult.
Osama Siblani, editor of The Arab American News in Dearborn, said he does not believe that Trump’s success in 2024 will be repeated.
“He has no support in this community with or without Ghalib,” Siblani said.