'We haven't sold our soul to the devil': Switzerland's trade deal with the U.S. divides opinion

Switzerland's fledgling commercialized woody with the U.S. is dividing sentiment arsenic authorities and concern leaders invited a "restart" for the country, portion critics caution it amounts to a sellout to the White House.

The commercialized deal, announced connected Friday, saw duties connected Swiss exports to the States slashed from 39% to 15% and Swiss companies pledge to marque $200 cardinal successful investments successful the U.S., including promises to summation manufacturing Stateside.

Switzerland had launched a charm violative up of the deal, sending a radical of apical Swiss CEOs — including the heads of luxury goods giants Rolex and Richemont — to the States successful aboriginal November, bearing gifts for U.S. President Donald Trump, including a golden Rolex ticker and specially-engraved golden bar.

While Switzerland's lobbying helped it unafraid its caller model commercialized statement with the U.S., the woody drew disapproval implicit the weekend.

The Greens, for example, called the woody a "surrender agreement" with enactment person Lisa Mazzone reportedly saying the "the Swiss economical elite and the Federal Council are bowing down to Donald Trump" with Swiss consumers and farmers apt to wage the price.

The enactment besides questioned the engagement of concern execs, saying the authorities had bought the woody with "questionable methods and gifts of gold."

Swiss Economy Minister Guy Parmelin rejected disapproval that the woody amounted to a capitulation to Trump, and besides defended the usage of concern leaders to woo the White House.

"We haven't sold our psyche to the devil," Parmelin said successful an interrogation with the Tagesanzeiger paper this weekend, adding that helium was "satisfied" with the statement and suggested it could inactive beryllium tweaked and improved.

"I would beryllium arrogant if we were backmost to zero percent tariffs. It's been a agelong road, and the effect is the champion we could achieve. Above all, it gives america a starting constituent for the adjacent negotiations," helium told the insubstantial successful comments translated by Google.

Parmelin said concern execs who had travelled to Washington were lone determination to "explain their position" and however tariffs were affecting trade. He conceded, however, that the travel had had a affirmative interaction connected talks.

"But it's true: they person power due to the fact that they person galore bully contacts successful the U.S. — and not conscionable with the Trump family. Some are friends with him due to the fact that they play play with him. I don't play golf, that's possibly my handicap — but that's life," Parmelin said.

Swiss manufacture leaders are surely relieved that a model agreement has been reached but it volition instrumentality clip to implement. Question marks stay implicit immoderate of the details, specified arsenic whether Switzerland volition person to judge U.S. nutrient imports similar chlorinated chickenhearted oregon hormone-treated beef, which are arguable successful Europe, arsenic portion of the duty-free bilateral tariff quotas that person been agreed successful principle.

The model statement is non-binding too, with much talks acceptable to instrumentality spot to finalize details wrong the woody which volition yet request the Swiss parliament, and perchance a nationalist vote, to o.k. it.

The U.S. was upbeat astir the woody connected Friday, with U.S. Trade Representative Jamieson Greer telling CNBC that the Swiss' $200 cardinal concern successful the States would boost the home economy.

"They're going to nonstop a batch of manufacturing present to the United States — pharmaceuticals, golden smelting, railway instrumentality — truthful we're truly excited astir that woody and what it means for American manufacturing."

Swiss manufacturers are besides relieved astir the deal, according to Stefan Brupbacher, main enforcement of Swissmem, an relation which represents mechanical and electrical engineering industries who, helium said, had seen a 15% driblet successful exports to the U.S. since August, with instrumentality exporters deed adjacent harder.

"For our members, determination is large relief, due to the fact that archetypal of all, coming down from 39 to 15% puts america astatine par with our main competitors from Europe and Japan, and hence wherefore we suffered enormously implicit the past 3 months with a slump of exports to the U.S. betwixt 15% and 40%," helium told CNBC's "Europe Early Edition."

"This 15% tariff complaint puts america astatine par with our main competitors, and that is simply a ground connected which we tin restart," helium said.

Flash information released by the Swiss system ministry connected Monday showed the system shrank by 0.5% successful the 3rd 4th of 2025. The contraction, the ministry said, was "driven by a crisp diminution successful worth added successful the chemic and pharmaceutical sector, manufacture arsenic a full recorded antagonistic growth."

Alessandro Bee, economist astatine UBS, said successful investigation Monday that contempt the model woody betwixt the U.S. and Switzerland, UBS' basal lawsuit script was that the Swiss system would spot GDP maturation of astir 1% successful 2026, which, it noted, "is noticeably beneath the mean maturation of 1.9% implicit the past 15 years."

"Growth should beryllium supported by the home economy, portion we bash not expect immoderate important impetus from overseas trade," Bee said, cautioning that contempt the simplification successful commercialized duties, "tariffs connected exports to the U.S. stay important and are apt to markedly dilatory export maturation to the U.S. compared to the erstwhile year."

Noting that astir fractional of Swiss exports to the U.S. are made up by the pharmaceutical industry, which was ne'er affected by the 39% tariff, Bee said that immoderate relocation of immoderate pharma manufacturing to the States — which immoderate Swiss pharma companies person flagged — could dent the system further.

"Nonetheless, Swiss pharmaceutical companies person indicated they are prepared to relocate accumulation for the American marketplace to the U.S., and this recently reached woody is improbable to alteration these plans. We expect relocation of pharmaceutical accumulation volition measurement connected Swiss maturation successful the mean term."