President Donald Trump has drawn criticism following comments about Karin Keller-Sutter, President of the Swiss Confederation, in a phone interview with CNBC on August 5. Trump mistakenly referred to her as the prime minister and described her as “the woman.”
During the discussion, Trump talked about trade tariff negotiations with both the European Union and Switzerland. He mentioned reducing EU tariffs from 30% to 15% but warned they could rise to 35% if the EU did not provide the U.S. with $600 billion for investment, which he clarified was not a loan, saying he could do “anything I want with it.”
Trump then commented on Switzerland, incorrectly identifying it as an EU member. “I spoke to their prime minister. The woman was nice, but she didn’t want to listen,” he said, referring to President Keller-Sutter.
Karin Keller-Sutter is the president of the Swiss Confederation, which operates under a Federal Council with seven members, not a prime minister. Keller-Sutter, from the Liberal Party, has been president since 2025 and a Federal Council member since 2019, heading the Federal Department of Finance.
Trump expressed discontent with Switzerland’s tariff structure, claiming the country paid “essentially no tariffs” and stated he told Keller-Sutter about a $41 billion U.S. trade deficit with Switzerland, emphasizing that the 1% tariffs could not continue.
However, official data indicates the U.S. trade deficit with Switzerland in goods was $38.3 billion in 2024, a 56.1% increase from $13.8 billion in 2023. The U.S. also has a $29.7 billion services trade surplus with Switzerland, which Trump’s figure does not include.
The conversation Trump mentioned took place on July 31 and was described as “disastrous” by sources familiar with the matter. Swiss officials thought they were close to a 10% tariff agreement, like deals with other countries. Instead, Trump announced a 39% tariff on Swiss goods, one of the highest globally.
The unexpected tariff announcement surprised Swiss negotiators who believed a provisional agreement had been reached with U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent. Switzerland had offered nearly $150 billion in U.S.-bound investment during negotiations, according to Swiss officials.
Social media users criticized Trump’s language, especially the reference to Keller-Sutter as “the woman.” One X user noted she is the president of the Swiss Confederation, not a prime minister, and questioned if Trump should know this basic fact.
After the tariff announcement, Swiss President Keller-Sutter and Economy Minister Guy Parmelin traveled to Washington, D.C., on August 5 for emergency discussions with the Trump administration. The hastily arranged trip aimed at securing a deal before the 39% tariffs took effect on August 8.
The high tariffs are expected to significantly impact Switzerland’s export-driven economy. The 39% rate affects Swiss goods such as watches, chocolates, machinery, and medical equipment. However, Switzerland’s pharmaceutical sector, which makes up 38.5% of exports, is currently exempt.
Economists predict the tariffs could reduce Switzerland’s GDP by about 0.6% in the medium term if pharmaceuticals remain tariff-free. Trump suggested in his CNBC interview that sector-specific tariffs on pharmaceuticals could reach 250% in the next 18 months.
Swiss businesses have raised concerns about the unpredictability of negotiations with Trump. Ivan Slatkine, head of the Federation of Romandie Enterprises, noted the challenges of negotiating with someone as unpredictable as the president. He mentioned Swiss companies believed a deal was nearly complete, pending Trump’s signature.
The Swiss government has defended its trade practices, stating it unilaterally eliminated all industrial tariffs in 2024, allowing over 99% of U.S. goods to enter Switzerland tariff-free. Switzerland is the sixth-largest foreign investor in the U.S. and leads in research and development investment.
Much of the U.S. trade deficit with Switzerland originates from gold exports, which transit through the country for refining and trading. Gold and pharmaceutical products are exempt from the current tariffs, leading to confusion among Swiss officials about additional concessions.
The delegation’s visit to Washington concluded without success, as Keller-Sutter was unable to meet Trump before departing. The 39% tariffs officially started on August 8, placing Switzerland among the countries with the highest U.S. import duties, alongside Laos, Myanmar, and Syria.
Swiss media outlets have criticized Keller-Sutter’s handling of the negotiations, with some calling the failed talks her most significant political setback. The tabloid Blick described her approach as “too naive,” while other publications questioned if Switzerland’s diplomatic strategy was effective for dealing with Trump’s negotiating style.
The tariff dispute poses a significant challenge for Swiss-U.S. relations, as the U.S. is Switzerland’s top export market for goods. The Swiss government has indicated it will continue seeking a negotiated solution while considering other options, including potential World Trade Organization complaints or retaliatory measures.
