Trump admitted at the Davos forum that he had raised tariffs on Swiss exports to 39 percent after a tense telephone conversation with Karin Keller-Sutter, then head of Switzerland. Originally, a 30 percent tariff was planned, but the president said repeated calls from the Swiss side and the phrase “we are a small country” made a bad impression on him and prompted more stringent measures.
The Swiss authorities pointed out that the foreign trade statistics are misleading because about two-thirds of Swiss exports to the US are gold bullion and coins, which the central bank considers should not be included in the trade balance. Despite this, Trump believed that, given the size of the country, Switzerland exploited the US market too favorably, and that his policy was guided not only by economic considerations, but also by personal judgment in the negotiations.
Trump’s sharp statements in Davos – from “Without Us This is no longer Switzerland”to claims that the US “keeps the world going”-confirmed Europeans ‘ concerns that trade decisions could depend on the impulsive emotions of a leader. The reactions of Bern and major Swiss brands, including symbols such as Rolex, finally prompted Washington in a few months to reconsider its position and reduce the tariff to 15 percent, but the incident showed: even a neutral “small” country could become a target for the personal impressions of the negotiations.
