Karin Keller-Sutter, president of the Swiss Confederation (photo: Fabice Coffrini / AFP / Profimedia)
The president of the Swiss Confederation, Karin Keller-Sutter, is accused of incorrectly calculated the terms of the commercial agreement he thought he could obtain with the Trump administration. Other critics accuse the vast pharmaceutical industry of the country of arriving the anger of the American president, writes the Financial Times.
On Thursday night, Keller-Sutter had a “disastrous” telephone call with Donald Trump, who would have reached the absurd accusations from Trump, according to several people familiar with the situation. “Switzerland steals $ 40 billion every year!” Trump said, according to the press in the country of the cantons.
The tabloid Blick wrote that the commercial agreement was the greatest defeat of Switzerland in 1515, when he lost the battle of Marignano against the French.
For Swiss chocolate and watches such as Swatch Group and Rolex, higher taxes threaten to affect sales on the world's largest consumption market. The pharmaceutical products represented almost half of the exports of Swiss goods to America in 2024, according to data compiled by Bloomberg Economics.
The Swiss economy is based on significant contributions from the giants in the Novartis and Roche Holding AG industry. Medication producers are facing a double pressure, as Trump has given a deadline until September 29 to the 17 pharmaceutical companies, including Novartis, to reduce the prices they sell in the United States, writes Le Temps.
Swiss officials were taken by surprise, because they were made to believe that their discussions with the US commercial representative, Jamieson Greer, and with the secretary of Treasury, Scott Bssent, were going well and that a provisional agreement had been reached. In April, Switzerland said that she is confident in obtaining an early commercial agreement, because she is willing to hire investments of nearly $ 150 billion to the US.
The result was a 39%shocking customs rate. Not only was it one of the largest globally, but it was even much higher than the 31% tax that Trump had announced in April.
The Swiss pharmaceutical sector sends about 60% of its exports to the US. Novartis and the American branch of Roche, Genentech, were among the pharmaceutical companies that received letters from the Trump administration this week, asking for reducing drug prices.
Greer focused on Friday and the pharmaceutical field: “They send enormous amounts of pharmaceuticals in our country, we want to produce pharmaceuticals in our country.”
The Swiss stock market, which was closed on Friday, is preparing for losses when resuming transactions Monday. Novartis, Roche and the group of consumer goods Nestlé, as well as the Richemont and Swatch luxury watch companies are all listed on the Swiss stock exchange.
