FX.co ★ Switzerland seeks friendship with Trump through weapons and LNG

Switzerland has found an unexpected way to reach an agreement with Trump’s administration and reduce the hefty 39% tariffs imposed on its exports to the United States. According to the Financial Times, Bern has offered Washington a deal: to purchase more American weapons, enriched uranium, and liquefied natural gas (LNG), as well as to make additional investments in the US economy.

The talks are underway, but no result is yet in sight. The head of the American Chamber of Commerce in Switzerland has even warned: “Don’t count on a quick deal.”

The relationship between the two countries resembles a diplomatic tango: the Swiss are trying to appease Trump by offering what he truly appreciates - money and defense contracts. The US president himself does not seem particularly impressed by the plan to minimize the trade deficit, which he discussed during a recent conversation with the Swiss leader. Switzerland’s willingness to buy more American weapons appears to be a kind of “gift” in response to the tariffs.

Meanwhile, gold and pharmaceuticals remain untouched by the tariffs. Apparently, no one wants to interfere in a gold mine or pharmaceutical business.

In any case, while Switzerland tries to tame Trump’s fiery trade policy with proposals that dip into the US budget, both sides carry on with their dialogue. For the time being, the tone of these talks resembles cautious hints rather than bold deals.