• The Swiss government is preparing a "more attractive offer" to President Trump to avoid a 39% tariff.
• The tariff, aimed at several economies, poses a significant threat to Switzerland's export-driven economy.
• Swiss President Karin Keller-Sutter is visiting Washington for urgent tariff discussions.

The Swiss government announced its readiness to make a "more attractive offer" in trade talks with the United States to counteract a proposed 39% import tariff expected to come into effect soon. This drastic tariff is part of President Trump's efforts to address perceived trade imbalances and has left the Swiss economy, heavily reliant on exports, in a precarious position according to Reuters and Reuters.

The Federal Council of Switzerland stated it is committed to negotiating terms that consider U.S. concerns and potentially revising existing tariffs. Trump has criticized Switzerland's trade surplus with the U.S., asserting that it constitutes a loss for the American economy. This has pushed Swiss officials into a negotiation strategy to reduce impending tariffs that threaten to severely impact industries such as pharmaceuticals, watches, and machinery, as highlighted by The Local and India Times.

In a significant escalation, Swiss President Karin Keller-Sutter and Business Minister Guy Parmelin are traveling to Washington in a last-ditch effort to avert the looming tariff crisis. Their visit aims to facilitate high-level discussions that could lead to mitigating the tariff impact, which would disproportionately affect Switzerland compared to other trading partners benefiting from lower tariff rates, such as the European Union, according to Reuters.

Economists predict that should the 39% tariff be enacted, it could lead to a reduction in Swiss economic output by up to 0.6% and impact key export sectors negatively. The urgency of these discussions highlights the economic stakes for Switzerland as it relies heavily on exports to the U.S. According to Hans Gersbach, an economist, a substantial offer will be essential to influence U.S. negotiations, indicating that minor concessions may not suffice, as reported by Reuters and The Local.

The Swiss business community has expressed concern over the potential punitive tariffs, which they argue would create an unfair competitive disadvantage compared to other countries with negotiated tariff rates. The chocolate, watchmaking, and pharmaceutical sectors are particularly worried about the repercussions of such tariffs, as reiterated by industry leaders and analysts tracking the negotiations, according to India Times and Reuters.