President Donald Trump is under scrutiny following remarks about Swiss Confederation President Karin Keller-Sutter during a phone interview with CNBC on Tuesday morning, August 5, 2025. Trump mistakenly referred to her as the prime minister and described her as “the woman.”
During the conversation, Trump addressed trade tariff negotiations involving the European Union and Switzerland. He mentioned reducing tariffs on the EU from 30% to 15%, with a warning to raise them to 35% if the EU did not fulfill its promise to provide the United States with $600 billion for investment purposes. Trump clarified it was not a loan, stating he could do “anything I want with it.”
Trump then shifted focus to Switzerland, incorrectly asserting that it is part of the EU. “I spoke to their prime minister. The woman was nice, but she didn’t want to listen,” Trump stated, referring to President Keller-Sutter.
Karin Keller-Sutter is the president of the Swiss Confederation, which operates with a Federal Council comprising seven members. Switzerland does not have a prime minister. Keller-Sutter, affiliated with the Liberal Party, has been president since 2025, previously serving on the Federal Council since 2019 and heading the Federal Department of Finance.
Trump expressed dissatisfaction with Switzerland’s tariff policies during the call, claiming the country paid “essentially no tariffs.” He informed Keller-Sutter that the U.S. had a $41 billion deficit with Switzerland and stated that the country could not continue with just 1% tariffs.
However, official data indicates that the U.S. trade deficit with Switzerland in goods was $38.3 billion in 2024, a 56.1% increase from $13.8 billion the previous year. The U.S. also maintains a $29.7 billion surplus in services trade with Switzerland, which Trump’s figure does not include.
The phone conversation Trump referenced took place on July 31 and has been described as “disastrous” by various sources familiar with the situation. Swiss officials believed they were nearing a 10% tariff agreement, similar to those 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 thought they had secured a provisional agreement with U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent. Switzerland had offered nearly $150 billion in U.S.-bound investment as part of the negotiations, according to Swiss officials.
Social media users criticized Trump’s language, particularly his reference to Keller-Sutter as “the woman.” One X user pointed out that she is the president of the Swiss Confederation, not a prime minister, questioning Trump’s knowledge of this basic fact.
Following the tariff announcement, Swiss President Keller-Sutter and Economy Minister Guy Parmelin hurried to Washington, D.C., on August 5 for emergency talks with the Trump administration. The hastily arranged trip aimed to secure a last-minute deal before the 39% tariffs took effect on August 7.
The high tariffs are anticipated to significantly impact Switzerland’s export-oriented economy. The 39% rate affects Swiss goods, including watches, chocolates, machinery, and medical equipment. However, Switzerland’s pharmaceutical sector, comprising 38.5% of the country’s exports, remains exempt from the tariffs for now.
Economists forecast the tariffs could reduce Switzerland’s GDP by approximately 0.6% in the medium term if pharmaceutical products remain protected. However, Trump suggested in his CNBC interview that sector-specific tariffs on pharmaceuticals could reach as high as 250% within 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 difficulty of negotiating with someone as unpredictable as the president. He said Swiss companies had been led to believe a deal was essentially complete and only awaited Trump’s signature.
The Swiss government has defended its trade practices, pointing out that the country unilaterally eliminated all industrial tariffs in 2024, meaning over 99% of U.S. goods enter Switzerland tariff-free. Switzerland also ranks as the sixth-biggest foreign investor in the United States and leads in research and development investment.
Much of the U.S. trade deficit with Switzerland is due to gold exports, which transit through the country for refining and trading purposes. Gold and pharmaceutical products are both exempt from Trump’s current tariff regime, leading to confusion in Swiss government circles about what additional concessions could be offered.
The delegation’s Washington visit concluded without success, as Keller-Sutter was unable to secure a meeting with Trump before her departure. The 39% tariffs officially took effect on August 7, placing Switzerland among the countries facing 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 describing the failed talks as her biggest political setback. The tabloid Blick called her approach “too naive,” while other publications questioned whether Switzerland’s diplomatic strategy was suited for dealing with Trump’s negotiating style.
The tariff dispute poses a significant challenge for Swiss-U.S. relations, as the United States serves as Switzerland’s top export market for goods. The Swiss government has indicated it will continue seeking a negotiated solution while exploring other options, including potential World Trade Organization complaints or retaliatory measures.