In a startling revelation during a recent interview, U.S. President Donald Trump disclosed that he increased trade tariffs on Switzerland to 39% due to a personal disagreement over a phone call. Trump explained that while he had initially set the tariffs at 30% as part of his “Liberation Day” trade policy initiated in April 2025, he added an extra 9% surcharge because he was offended by the tone of a Swiss female leader. This move, which targeted one of America’s long-standing partners, highlights Trump’s continued use of “retaliatory tariffs” as a primary tool for international diplomacy and economic leverage.
According to Trump, the escalation occurred when Karin Keller-Sutter, a member of the Swiss Federal Council, called him to discuss the initial 30% tariff. Trump stated that he found her repeated pleas regarding Switzerland being a “small country” irritating. “She kept saying ‘Sir… Sir… we are a small country, we cannot bear this,'” Trump recounted, adding that he countered by pointing out the $42 billion profit Switzerland makes from trade with the U.S. Angered by the persistent tone of the conversation, Trump decided on the spot to hike the rate further to 39%, accusing the country of “exploiting” American markets for decades without paying proper duties.
Key Developments and Global Impact:
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The Davos De-escalation: Despite the initial hike, the situation reportedly cooled during the World Economic Forum in Davos. Trump eventually agreed to reduce the tariffs to 15% after Swiss companies pledged to invest $200 billion in the U.S. by 2028.
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Broader Trade Strategy: Trump mentioned in the interview that he has similar messages for 40 other countries, claiming that many have been “ripping off” the United States. His second term has seen consistent pressure on global partners to renegotiate trade terms under threat of high tariffs.
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Contrast with India: Interestingly, the report notes that trade relations with India have followed a different trajectory; following a bilateral trade agreement, tariffs on Indian goods were recently reduced to 18%.
