Commerce Secretary Howard Lutnick said Friday he is “not optimistic” about reaching a trade deal with Switzerland, pointing to the country’s pharmaceutical exports as a sticking point ahead of talks with Swiss Vice President Guy Parmelin in Washington, D.C.
“The Swiss like to say they’re a small country of only 9 million people — a small country, a rich country,” Lutnick said in an interview on Bloomberg Television’s Surveillance.
“How did they become so rich?” he added. “They sell us pharmaceuticals like it’s going out of style. They make so much money off America, that’s why they’re rich. So let’s hear what they have to say.”
The comments set the tone for another round of discussions after trade talks collapsed last month, leading to a 39% tariff rate on Swiss goods. The United States has repeatedly criticized Switzerland, which is not part of the European Union, for its large current account surplus.
“Now you go to Switzerland, 9 million people,” Lutnick said Friday. “I mean, what are they going to offer the American exporter, as compared to the size and scale by which they export and earn money off of us?”
According to sources familiar with the matter, Switzerland has prepared a new package of economic measures aimed at persuading Washington to scale back tariffs. Proposals include encouraging Swiss businesses to invest more in the United States, boosting defense procurement, and expanding market access for U.S. energy exports to Switzerland.
Officials say the country’s goal is to lower tariffs on goods and prevent new duties from hitting the pharmaceutical industry.
Pharmaceuticals are Switzerland’s most important export sector, representing nearly half of the country’s 65 billion Swiss francs ($81 billion) in shipments to the U.S. in 2024. While drugs have so far been spared from tariffs, the U.S. is considering a separate levy under another legal authority.
Lutnick’s comments marked his sharpest public criticism of the Swiss pharmaceutical sector, home to global giants Novartis AG and Roche Holding AG. Roche Chairman Severin Schwan is helping lead lobbying efforts for a more favorable deal.
Switzerland has made repeated efforts to ease the tariffs, among the steepest imposed under President Donald Trump’s global trade reset.
A last-ditch attempt led by President Karin Keller-Sutter failed in early August, and the 39% tariffs took effect on Aug. 7, raising concerns about damage to the Swiss economy by cutting access to its largest export market.
Sergio Ermotti, CEO of UBS, said Friday he worries the tariffs will put pressure on growth and fuel higher inflation. Speaking at a business event in Baden, he said he was disappointed by the U.S. measures but remained confident that Swiss officials could secure lower duties.
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