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Swiss delegation in Washington for last-minute talks
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US wants Swiss to buy more arms, energy, says source
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Final sign-off from Trump is needed, experts say
(Adds details from sources, analysts)
By John Revill
ZURICH, Aug 6 (Reuters) - Swiss President Karin
Keller-Sutter will meet U.S. Secretary of State Marco Rubio on
Wednesday with Washington potentially seeking more energy and
defence purchases to clinch a deal that would avert a crippling
39% tariff on Swiss imports.
Switzerland was stunned by U.S. President Donald Trump's
decision last week to apply the steep rate - among the highest
announced since he launched his global trade reset - which
threatens to do major damage to its export-orientated economy.
Keller-Sutter and Business Minister Guy Parmelin flew to
Washington on Tuesday for last-minute negotiations aimed at
reducing the tariffs before they go into effect on Thursday.
The Trump administration, meanwhile, is looking for
Switzerland to purchase more energy and defence products,
according to a Swiss source familiar with the discussions.
Parmelin had already raised the possibility of
Switzerland buying U.S. liquefied natural gas (LNG) as one of
the options to secure a better deal.
"Look at the European Union, they promised to buy LNG.
Switzerland imports LNG too - maybe that's one path," Parmelin
said.
Under a deal the EU struck with Washington last month to
secure a
15% tariff rate
, Brussels agreed to buy $750 billion of LNG, oil, and
nuclear energy products over the next three years.
Although the EU made no formal commitment to buy more
U.S. arms, it did indicate to U.S. negotiators there would be an
increase in defence spending in line with higher NATO
commitments, which would benefit U.S. suppliers.
These commitments were seen as important in clinching a
deal, said a person familiar with the U.S.-EU negotiations.
Switzerland already purchases some military hardware
from the U.S. and has placed a 6-billion-franc ($7.43-billion)
order to buy Lockheed Martin F-35A Lightning II fighter
jets.
While the Swiss government is focused on sweetening its
offer to Washington and says it is not planning countermeasures
against the U.S. tariffs, some Swiss politicians have called for
the F-35 deal to be scrapped over the trade dispute.
WINNING OVER TRUMP
Keller-Sutter, who is leading a delegation of officials,
will meet with Rubio for one hour of talks at the State
Department at 10:15 a.m. (1415 GMT), according to the public
schedule of the department.
The Swiss government declined to comment on the meeting or
whether other meetings with U.S. officials were planned.
Following talks with Treasury Secretary Scott Bessent and
U.S. Trade Representative Jamieson Greer, Switzerland had agreed
a draft agreement with the United States in early July that was
reported to include a 10% tariff rate.
Trump's U-turn on Friday, however, followed what some
U.S. officials said was a fraught telephone call with
Keller-Sutter. Swiss sources said the call was not a success,
but denied there was a falling out between the two leaders.
The United States is a leading buyer for Swiss watches,
machinery and chocolate, industries that will suffer if the 39%
rate - much higher than those secured by the EU, Britain and
Japan - is implemented.
Switzerland's business community has welcomed the efforts by
Bern to break the tariff impasse, which industry associations
say threatens tens of thousands of Swiss jobs.
"We greatly appreciate the tireless commitment of the
Federal Council and the Federal Administration and welcome the
efforts to find a solution with the United States," said Noe
Blancpain, executive board member of industry association
Swissmem.
Claude Maurer, chief economist at Swiss think tank BAK
Economics, said it did not matter who the Swiss officials met
with on the first day, as long as the delegation wins over
Trump.
"Trump's team and the Swiss negotiators apparently
already struck a deal. So it's in their mutual interest to get
it over the line with Trump himself," said Maurer.
"Whoever is best positioned to make that happen will be
important."
($1 = 0.8080 Swiss francs)