Switzerland, one of the countries for which US President Trump suspended tariffs for 90 days, is getting closer to the EU amid economic uncertainty and instability. Despite including Switzerland, Trump’s decision to temporarily suspend customs duties imposed recently, except for China, had a shocking impact on Switzerland, a country historically known as a “neutral nation,” due to imposing higher taxes on it compared to other European countries. According to Reuters, this move pushed Switzerland towards the European Union (EU). While Trump initially announced a 20% tariff for EU countries and a 31% tax for “export-oriented” Switzerland, both tariffs were later reduced to 10%. Although the pause in the “trade war” against numerous countries except China provided relief, it was noted that for Switzerland, this meant the need for “increased interaction with EU member neighbors in a more unpredictable world.”

“We Want to Deepen Relations with the EU” Switzerland took the first step towards closer economic integration with the EU in December by reaching a political agreement with Brussels to review their trade relationship. Although there is a lengthy approval process ahead for this agreement, Swiss Federal President and Finance Minister Karin Keller-Sutter, in an interview with the Neue Zürcher Zeitung on Wednesday, stated, “We want to ensure stability with the EU and deepen our relations.”

According to Reuters, which mentioned the assessment that “Neutral Switzerland has directly combined a low-tax business model with direct democracy to create a stable and open economy that is wealthier than most EU member countries,” Keller-Sutter indicated that she “rapidly” spoke with EU Commission President Ursula von der Leyen after Trump’s tariff announcement and agreed to stay in touch on how to proceed.

FIRST-EVER PARTICIPATION IN EU MEETING BY SWISS FINANCE MINISTER Keller-Sutter will be the first Swiss Finance Minister to attend a routine meeting of EU finance ministers this Friday. Additionally, the invitation for Keller-Sutter to participate in the informal meeting of the Economic and Finance Ministers Council (ECOFIN) to be held in Warsaw, Poland, came prior to Trump’s re-election. However, her attendance at this meeting will further enhance cooperation in strategic areas between the EU and Switzerland in face of geopolitical turmoil such as the Russia-Ukraine conflict and the US’s “protectionist” economic policies.

Jean-Philippe Kohl, Vice President of the Swissmem industry association, stated that the shock caused by the US policy has made approval of the new agreement with the EU and further strengthening of the future ties with the EU as its largest market more urgent for Switzerland.

“MOST PARTIES SEE A SECURE FUTURE IN PARTNERSHIP WITH THE EU” For the agreement to be accepted in Switzerland, it is expected to face a “challenging approval process.” Social Democrats (SP) member of parliament Franziska Roth pointed out that if the agreement does not guarantee the preservation of Swiss standards of living, such as high wages, its acceptance in any referendum could become more difficult if it passes through parliament. Referring to a decision adopted in parliament by different parties last month, focusing on a stronger security role in Europe and security cooperation with the EU, Roth emphasized that this indicated that most parties only see a secure future for Switzerland in partnership with the EU.