Rolex, partners group take Swiss tariff plea direct to Trump
The unusual and rare joint effort by business people across Swiss flagship industries highlights what’s at stake for the small European country
[ZURICH] Some of Switzerland’s most high-profile business executives attended an Oval Office meeting that prompted US President Donald Trump to endorse additional trade negotiations, as Bern seeks to lower White House tariffs imposed on Swiss goods.
Partners Group billionaire founder Alfred Gantner, Rolex boss Jean-Frederic Dufour, Daniel Jaeggi of commodity trader Mercuria, Richemont chairman Johann Rupert, Diego Aponte of shipping firm MSC and Marwan Shakarchi of MKS Pamp, a gold refiner, all attended a meeting with Trump, according to a statement. Bloomberg News earlier reported the meeting.
The unusual and rare joint effort by business people across Swiss flagship industries highlights what’s at stake for the small European country, which depends heavily on exports and has been slapped with the highest tariff rate of any developed nation. It’s also a sign of growing nervousness among those leaders about the longevity of the levies.
Trump, in a social media post following the meeting, said that he had met “high-level Representatives of Switzerland” and ordered US Trade Representative Jamieson Greer to schedule follow-up negotiations.
Both the White House and Switzerland’s government previously declined to provide details on who took part in the meeting.
The Swiss government says it was aware of the initiative, but the move may also reflect frustration among businesses after Trump slapped a 39 per cent levy on Switzerland this summer, the highest of any developed nation. The government has since then engaged in regular talks with the US on the issue, but so far there’s been little information about any progress. President Karin Keller-Sutter, late last month, declined to put a timeline on the negotiations.
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“This is a private initiative by Swiss business leaders, which was supported by the State Secretariat for Economic Affairs in its preparation, but is taking place independently of the Federal Council’s involvement,” a spokesperson for the Economy Ministry said.
One sticking point in the talks between the White House and Switzerland has been Switzerland’s gold refining industry. While small in terms of economic output for Switzerland, gold refiners account for a significant part of the country’s trade deficit.
Those firms have offered to invest in the US gold-refining industry as part of efforts to persuade the Trump administration to lower the import tariffs for Swiss firms, Bloomberg has reported.
“While we gave our support to the ongoing negotiations between our two governments, we did not participate in any negotiations with the US President,” they said. “Our discussions highlighted the strength of the private sector relationships that are a cornerstone of our bilateral cooperation and mutual prosperity.”
Swiss push
Other Swiss companies, keen for the tariff impasse to be resolved more quickly, are also considering getting involved in the direct diplomacy, according to a source familiar with their plans. While they remain on the sidelines, these exporters have turned to advisers as they debate the pros and cons of joining the business push.
The Swiss Economy Ministry said that it “welcomes the commitment shown by the companies concerned”, but that the government remains in charge of negotiations. Economy Minister Guy Parmelin is in regular contact with US authorities, including Greer, according to the statement.
But the business leaders may be hoping that they can nudge things along with their initiative and help Switzerland build a better rapport with the White House – and Trump – after the disastrous outcome to earlier negotiations that culminated in the shock 39 per cent announcement in August. BLOOMBERG
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