AI
Written with AI assistanceâ˘February 26, 2026â˘
AI
Generated IllustrationA Swiss parliamentary delegation is in Washington for trade talks as the Swiss government clarifies that new US tariffs announced by President Trump are a replacement for, not an addition to, previous measures. The talks aim to explore a possible bilateral trade agreement.
"The new US tariffs, which came into effect on Tuesday, will replace the existing ones for 150 days. They do not come on top of the existing measures applicable to each country."
"A first round of technical talks took place recently in Switzerland. The plan is to continue these discussions, and potentially move to talks between the chief negotiators, over the coming weeks."
Confusion has gripped the trans-Atlantic market, but Bern is finally cutting through the noise with a critical clarification: the new US tariffs are a substitution, not a penalty on top of a penalty. The Swiss government confirmed on Wednesday that the 10% tariffs announced by President Donald Trump, which came into force on Tuesday, will replace existing measures for a period of 150 days. This announcement comes as a vital stabilizer for Swiss industries that feared a compounding economic hit.
Economics Minister Guy Parmelin moved quickly to dispel fears, asserting that these new duties do not stack onto previous levies. This distinction is paramount. Had the tariffs been additive, the cumulative burden on Swiss exports could have been catastrophic. Instead, we face a volatile but singular hurdle. While the European Parliament has reacted by freezing ratification of its trade deal with Washington, Switzerland is taking a bolder, more pragmatic path. Bern refuses to disengage, choosing instead to keep communication channels wide open as it navigates this unpredictable economic landscape.
The catalyst for this trade turmoil was a seismic legal ruling on Friday, where the US Supreme Court struck down the Trump administration's previous global tariff regime. This victory for the rule of law, however, unleashed immediate retaliation. President Trump, refusing to accept the judicial rebuke, countered on Saturday with a fresh 10% duty, plunging global markets back into uncertainty. This 'tax yo-yo' has left nations scrambling to adjust their economic strategies in real-time.
For Switzerland, the stakes are incredibly high. Bern had previously managed to negotiate a temporary reduction to a 15% rate, a significant diplomatic victory considering Trump initially threatened a crushing 39% levy. Now, Swiss negotiators are back in the ring, fighting to secure that 15% rate against the backdrop of the new 10% blanket announcement. The volatility is palpable. As the Swiss media noted, while the Supreme Court's decision was a blow to presidential overreach, it has paradoxically triggered a chaotic scramble where the rules of engagement change by the hour.
While Brussels hits the brakes, Swiss lawmakers are accelerating their diplomatic engine in Washington. A high-level parliamentary delegation, including Damian MĂźller, president of the EFTA/EU delegation, is currently on the ground, engaging directly with the office of US Trade Representative Jamieson Greer and key Republican Congress members. Their mission is clear: demonstrate that Switzerland is not just another trading partner, but a critical economic ally.
The delegation is armed with powerful arguments. In every meeting, they are emphasizing Switzerland's role as a leading foreign investor and a creator of high-quality jobs within the United States. This is not a passive plea for mercy; it is an assertive negotiation based on mutual value. MĂźller reported that during roundtable discussions, even US trade experts expressed skepticism about whether these higher tariffs would actually benefit the American economy, citing rising costs of living. The Swiss strategy is to leverage this internal US doubt while pushing for a bilateral agreement that insulates Swiss industries from further erratic policy shifts.
Despite the government's clarifications and the delegation's efforts, the reality on the ground for Swiss companies is one of frustrating limbo. The 'yo-yo' nature of US tax policy has created an administrative nightmare. Some businesses are currently seeking refunds for duties already paid under the now-voided system, while others are paralyzed, unsure of which rates will ultimately apply to their next shipment. This uncertainty is poison for long-term planning.
The clock is ticking. With the new tariffs set for a 150-day window, there is a narrow timeframe to solidify a permanent deal. Guy Parmelin confirmed that technical talks have already occurred in Switzerland, with plans to escalate to chief negotiators in the coming weeks. The Swiss delegation's next stop is Indianaâa strategic hub for pharmaceutical and medical technologyâto reinforce the tangible benefits of Swiss-US cooperation. The message is urgent: Switzerland is open for business, but it demands a stable playing field to thrive.