Swiss president to meet US Secretary of State Rubio for last-minute trade talks

Swiss President Karin Keller-Sutter will meet U.S. Secretary of State Marco Rubio on Wednesday with Washington potentially seeking more energy and defence purchases to clinch a deal that would avert a crippling 39% tariff on Swiss imports.

Switzerland was stunned by U.S. President Donald Trump's decision last week to apply the steep rate - among the highest announced since he launched his global trade reset - which threatens to do major damage to its export-orientated economy.

Keller-Sutter and Business Minister Guy Parmelin flew to Washington on Tuesday for last-minute negotiations aimed at reducing the tariffs before they go into effect on Thursday.

The Trump administration, meanwhile, is looking for Switzerland to purchase more energy and defence products, according to a Swiss source familiar with the discussions.

Parmelin had already raised the possibility of Switzerland buying U.S. liquefied natural gas (LNG) as one of the options to secure a better deal.

"Look at the European Union, they promised to buy LNG. Switzerland imports LNG too — maybe that's one path," Parmelin said.

Under a deal the EU struck with Washington last month to secure a 15% tariff rate, Brussels agreed to buy $750 billion of LNG, oil, and nuclear energy products over the next three years.

Although the EU made no formal commitment to buy more U.S. arms, it did indicate to U.S. negotiators there would be an increase in defence spending in line with higher NATO commitments, which would benefit U.S. suppliers.

These commitments were seen as important in clinching a deal, said a person familiar with the U.S.-EU negotiations.

Switzerland already purchases some military hardware from the U.S. and has placed a 6-billion-franc ($7.43-billion) order to buy Lockheed Martin F-35A Lightning II fighter jets.

While the Swiss government is focused on sweetening its offer to Washington and says it is not planning countermeasures against the U.S. tariffs, some Swiss politicians have called for the F-35 deal to be scrapped over the trade dispute.

WINNING OVER TRUMP

Keller-Sutter, who is leading a delegation of officials, will meet with Rubio for one hour of talks at the State Department at 10:15 a.m. (1415 GMT), according to the public schedule of the department.

The Swiss government declined to comment on the meeting or whether other meetings with U.S. officials were planned.

Following talks with Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, Switzerland had agreed a draft agreement with the United States in early July that was reported to include a 10% tariff rate.

Trump's U-turn on Friday, however, followed what some U.S. officials said was a fraught telephone call with Keller-Sutter. Swiss sources said the call was not a success, but denied there was a falling out between the two leaders.

The United States is a leading buyer for Swiss watches, machinery and chocolate, industries that will suffer if the 39% rate - much higher than those secured by the EU, Britain and Japan - is implemented.

Switzerland's business community has welcomed the efforts by Bern to break the tariff impasse, which industry associations say threatens tens of thousands of Swiss jobs.

"We greatly appreciate the tireless commitment of the Federal Council and the Federal Administration and welcome the efforts to find a solution with the United States," said Noe Blancpain, executive board member of industry association Swissmem.

Claude Maurer, chief economist at Swiss think tank BAK Economics, said it did not matter who the Swiss officials met with on the first day, as long as the delegation wins over Trump.

"Trump's team and the Swiss negotiators apparently already struck a deal. So it's in their mutual interest to get it over the line with Trump himself," said Maurer.

"Whoever is best positioned to make that happen will be important."

($1 = 0.8080 Swiss francs)