Trump Seals Tariff Deal with Switzerland, Reportedly After Flattered with Gifts

TEMPO.CO, Jakarta - US President Donald Trump faced backlash after reportedly cutting tariffs for Switzerland after receiving Rolex and gold-clad gifts from Swiss business moguls. 

According to The Daily Beast, Swiss President Karin Keller-Sutter had previously attempted to persuade Trump to reconsider his stance on Swiss imports.

However, a phone call in August with the 79-year-old US president led to a stalemate in trade negotiations between the two countries.

This changed after a group of Swiss billionaires reportedly arrived at the White House last week bearing gifts.

On November 4, Rolex CEO Jean Frédéric Dufour, Johann Rupert of luxury goods conglomerate Richemont, and Marwan Shakarchi of gold refining company MKS met with Trump at the White House.

Following their visit, a gold clock and a bar of gold appeared on Trump's Oval Office desk.

Hodinkee, an e-commerce site focusing on watches, received a letter from Dufour confirming that the new clock was a gift from Rolex.

The 57-year-old Dufour described the gift as one of several "symbolic gestures of appreciation reflecting the spirit of friendship and enduring ties between the two nations."

Watch experts from Watches of Espionage and Niccoly identified the clock as a Rolex Datejust, and Hodinkee verified that it was not a retail product.

The store noted that the watch resembled the Submariner Desk Clock, a stainless steel watch priced at US$10,270, although the version on Trump's desk was made of gold.

Alongside the watch was a specially engraved gold bar from MKS, according to BBC.

The gifts from the three Swiss business magnates seemed to have impressed Trump; subsequently, negotiations progressed swiftly and a deal was reached.

The Swiss government praised the outcome as a "great new dynamic in our bilateral relations."

As reported by CNN, as part of the agreement, Swiss companies committed to investing "at least $200 billion into the United States, with at least $67 billion worth of investment occurring in 2026," according to a White House fact sheet published on Friday.

In a separate statement, the Swiss government said the total investment would be completed by 2028. The government also agreed to lower tariffs on "a range of American products."

Additionally, tariffs for pharmaceutical and semiconductor products from Switzerland would not exceed 15 percent, according to a joint statement. This comes amid the Trump administration considering higher tariffs for both sectors.

This move was made as Trump imposed high taxes on the Swiss due to the significant US trade deficit.

The trade deficit with Switzerland is primarily driven by Swiss exports of chemicals and pharmaceutical products, in addition to gold. Since the tariffs were put in place, the Swiss government and private sector have worked together to lower them.

Switzerland is a leading gold refiner, and one of its plans is for the gold industry to increase its refining capacity in the US to help balance trade flows.

Gifts Rewarded with Tariff Cuts

After the gifts, US Trade Representative Jamison Greer announced on CNBC's Squawk Box on Friday morning that the United States had reached a trade deal with Switzerland.

The Swiss government said on X that the deal reduced the tariffs from 39 percent to 15 percent, in line with the tariffs applied by other European countries.

This relief was welcomed by Switzerland, as high tariffs caused Swiss technology exports to the US to drop by 14.2 percent in the third quarter.

It is customary for a president to receive gifts from guests, but the gifts are treated as belonging to the government and are handed over to the National Archives after they leave office. If a president wants to keep a gift for themselves, they must pay federal tax if the gift is not from a close relative.

Trump's relationship with Dufour had been scrutinized previously.

On September 7, they attended the US Open Men's Tennis Final together.

Democratic Senator Elizabeth Warren accused Dufour of trying to flatter Trump by inviting him to the match. Dufour admitted that Trump joked about whether he would have been invited if not for US tariffs on Switzerland.

"President Trump, never one to miss a rhetorical opportunity, did ask in jest whether he would have been invited had it not been for the tariffs," Dufour said.

"A moment that brought a round of laughter all around and, as you can imagine, a swift return of attention to the unfolding excitement on court."

Senator Warren condemned the relationship.

"Corruption is not a laughing matter, while many families are getting crushed by Trump’s chaotic tariffs, Donald Trump and his rich friends are laughing about tariffs in a fancy box sponsored by a luxury watch brand. How much more out of touch can Trump be?"

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