Swiss govt open to new US defence orders to tackle tariffs

GENEVA – Swiss Defence Minister Martin Pfister said on Aug 10 that he was “open” to placing new arms orders with the US as a way to try to reduce Washington’s whopping tariffs.

Switzerland’s government is seeking more talks with the United States after a last-gasp mission to the US capital failed to stop a 39 per cent tariff blow that businesses described as a “horror scenario”.

“Military purchases are important for relations with the United States,” Mr Pfister told the domestic Keystone-ATS news agency.

However, “we must first find a path for discussion with the Americans” to try to move relations forward overall, he said.

US President Donald Trump blindsided the Swiss when he announced that the wealthy Alpine nation would be hit by one of the

highest tariffs among new duties

on imports from dozens of economies that took effect on Aug 7.

The tariff jeopardises entire sectors of the export-heavy Swiss economy, notably watchmaking and industrial machinery, but also chocolate and cheese.

Swiss businesses worry that competitors in other wealthy economies will have an edge, with the European Union and Japan having

negotiated a 15 per cent tariff

and Britain securing a rate of 10 per cent.

Switzerland has argued that the United States enjoys a significant services trade surplus and that most US industrial goods enter Switzerland tariff-free.

Mr Pfister stressed that the government had decided not to call into question Switzerland’s current contract to buy 36 new Lockheed Martin F-35A fighter jets.

“The issue of the fixed price remains to be resolved,” he added.

Switzerland and the US are quibbling over the final price of the F-35As bought to replace the ageing Swiss fleet.

The US Defence Security Cooperation Agency wants Switzerland to assume additional costs, but Bern says it is sticking to the agreed price of just over six billion Swiss francs (S$9.5 billion).

The F-35A combat aircraft – already used by the US Air Force and several European countries – was chosen in June 2021 instead of the Airbus Eurofighter, the F/A-18 Super Hornet by Boeing, and French firm Dassault’s Rafale.

Switzerland’s longstanding position has been one of well-armed military neutrality and the landlocked European country has mandatory conscription for men. AFP