Investing.com --Trade negotiations between Switzerland and the United States will extend beyond the initial March target, according to Swiss President Guy Parmelin. The delay comes as both nations struggle to formalize a preliminary accord reached last year to lower punitive duties.
Speaking to state broadcaster RSI, Parmelin, who also serves as the nation's economy minister, confirmed that the end-of-month deadline is "de facto" no longer applicable, with further discussions scheduled to continue into the second quarter.
From 39% duties to a "new normal"
Switzerland has been navigating a particularly aggressive trade environment since August, when U.S. President Donald Trump imposed a 39% duty on Swiss imports, the highest rate levied against any European nation.
Bern successfully brokered an initial deal in November to reduce those tariffs to 15%, but the path to a permanent agreement has been complicated by shifting U.S. judicial and executive actions.
The situation grew more complex in February after the U.S. Supreme Court struck down the administration's original global tariffs, leading to a new 10% baseline duty and a fresh wave of trade investigations.
The ongoing uncertainty is particularly taxing for Switzerland's high-value export sectors, including pharmaceuticals, watches, and precision machinery. U.S. authorities launched a new probe into several major trading partners, including Switzerland, earlier this month, casting doubt on whether the previous 15% compromise will hold.
Analysts suggest that the upcoming round of talks, likely to take place in April, will be critical for determining if Switzerland can maintain its preferential status or if it will be swept into a broader global duty framework.
Corporate hedging and export stability
Swiss multinationals face the lack of a finalized treaty, which means continued volatility in landed costs for the U.S. market. Many firms had already begun pricing in the March resolution. The extension now forces a reliance on short-term currency and trade hedges.
However, President Parmelin's commitment to ongoing dialogue suggests that both sides remain motivated to avoid a return to the 39% peak. Investors are closely watching the April session for any signs of a "standstill agreement" that would protect Swiss exports from the latest round of U.S. trade investigations.
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