Swiss Economic Diplomacy in Turbulent Times

Publication date: Speech published on November 20, 2025

Overview

  • Author: Federal Councillor Guy Parmelin (EAER)
  • Source: Speech on the occasion of Economic Day of the Basel-Landschaft Chamber of Commerce
  • Publication date: November 20, 2025
  • Read on: November 20, 2025
  • Reading time: Approx. 12-15 minutes

Summary

Guy Parmelin reports on his recent negotiations in Washington and Switzerland's current economic situation. The major topic: tariff reductions and a country balancing between all sides.

Key points:

  • USA reduces additional tariffs on Swiss goods from originally 39% to 15% – "not ideal, but better"
  • Swiss GDP contracted by 0.5% in Q3 2025 (mainly due to pharmaceutical inventory effects)
  • Short-time work compensation extended from 18 to 24 months
  • Swiss companies plan 200 billion in US investments over 5 years
  • New free trade agreements with India, Kosovo, Thailand, Malaysia and Mercosur concluded
  • Regulatory relief to be implemented "even more offensively"
  • No automatic adoption of US sanctions – Switzerland remains "autonomous and sovereign" [⚠️ Still to verify: How binding is this really?]

Opportunities & Risks

Opportunities:

  • Competitiveness versus EU competition improves through tariff reduction
  • Diversification of trade relations progresses
  • Proven crisis instruments (short-time work) are strengthened

Risks:

  • 15% tariffs remain a competitive disadvantage versus tariff-free EU trade
  • Dependence on US whims persists
  • Further protectionist waves could follow

Looking to the Future

Short-term (1 year): New tariff rates take effect "in the coming days." Negotiations for legally binding trade agreement begin. Regulatory relief will be specified.

Medium-term (5 years): Swiss companies invest massively in the USA. Further free trade agreements (Vietnam, UK) will be concluded. EU relations must be stabilized.

Long-term (10-20 years): Switzerland navigates between the major blocs and tries to maintain its small-state niche. Success depends on whether the "Swiss success model" also works in a more multipolar world.


Fact Check

Solidly documented:

  • Tariff reduction from 39% to 15% through declaration of intent
  • GDP contraction in Q3 2025
  • Extension of short-time work compensation to 24 months

Lacks transparency:

  • Exact date for new tariffs to take effect [⚠️ Still to verify]
  • Details on the planned 200 billion US investments [⚠️ Still to verify]
  • Concrete measures of "more offensive" regulatory relief [⚠️ Still to verify]

Brief Conclusion

Parmelin sells a half-success as teamwork and tries to make a virtue of necessity. The tariff reduction is indeed better than nothing, but Switzerland remains in a precarious position between the great powers. The many clarifications show: Political pressure at home is high. Follow-up article: Swiss Foreign Policy between Trump and EU


Three Critical Questions

  1. Freedom vs. Dependence: If Switzerland must "pragmatically" adapt its standards for every trade deal – where does the much-praised sovereignty remain?

  2. Investment Transparency: 200 billion Swiss investments in the USA sounds impressive – but who monitors whether this is really in the interest of the Swiss economy, or just Trump diplomacy?

  3. Responsibility for Small Businesses: While large corporations can diversify their supply chains – what happens to SMEs that cannot afford lobby trips to Washington?