As Switzerland closes in on a deal with the US to lower tariffs on the country, it will owe thanks to some of its richest executives who played a key role in wooing President Donald Trump.
If the shuttle diplomacy of Switzerland’s top trade diplomat laid the groundwork for an agreement, crucial momentum was generated when businessmen led by billionaire figures from Richemont, Partners Group and Mercuria Energy Group Ltd. Met Trump at the White House a week ago.
The meeting, which also included Rolex Chief Executive Officer Jean-Frederic Dufour and Marwan Shakarchi, head of gold refiner and trader MKS PAMP Group, was like a gathering of old buddies, according to a person briefed on the encounter. That’s in sharp contrast to the heated conversation that took place between the US president and his Swiss counterpart at the end of July, after which Trump slapped Switzerland with the highest tariff of any developed country.
Switzerland has since been engaged in efforts to reduce the levy, which stands at 39%. Bloomberg reported Monday that an agreement to cut it to 15% is close, and Trump said his administration is “working on a deal” to get it lower.
The Billionaire Push
The executives emphasized that they did not negotiate with Trump at the White House meeting, but their involvement reflects a deliberate Swiss pivot to leverage the strength of its business lobby.
Their money and influence nudged Switzerland toward securing better terms.
“It’s well known that Trump likes billionaires and business people, so this group isn’t surprising,” said Jacob Funk Kirkegaard, a senior fellow at the Bruegel think tank. “The Swiss government has drawn a blank, so there was nothing to lose.”
It’s a well worn path. Wealthy business people have been drafted in to lobby the US president on other issues, with Trump last month deciding against sending federal forces to San Francisco after calls with tech billionaires.
The Swiss business leaders described their meeting with Trump as “highly constructive.” They raised the suffering of many companies in Switzerland and asked the US president if he thought the 39% import tariff was sustainable, according to the person briefed on the encounter, who asked not to be identified discussing the meeting.
“Our discussions highlighted the strength of the private sector relationships that are a cornerstone of our bilateral cooperation and mutual prosperity,” the executives said in a statement.
‘New Dynamic’
Late last week, the Swiss Economic Affairs Department thanked Trump for a “great new dynamic in our bilateral relations.”
But they also acknowledged the role played by the executives who included Alfred Gantner, co-founder of private equity firm Partners Group, and Johann Rupert, who leads luxury firm Richemont. Gantner owns 5% of Partners Group, which has a market value of 26 billion francs ($32.5 billion). The net worth of Rupert and his family stands at $17.9 billion, according to data compiled by Bloomberg.
Five out of the six businessmen are from companies based in Geneva, highlighting the heft of Switzerland’s second city that’s home to private banks, commodity traders, watchmakers and luxury goods companies. The executives also bore gifts, including a gold Rolex clock and an engraved gold bar, according to media reports.
“Trump is predominantly driven by one thing, which is personal gain,” said Kirkegaard. “The guy is a medieval prince, he needs to be buttered up. If it turns out to be private billionaires, then so be it.”
Read More: Switzerland Moves Close to Securing Improved 15% Tariff Deal
The warmth of the Oval Office meeting was far different to the frosty phone conversation between Trump and Swiss President Karin Keller-Sutter just over three months ago. When Keller-Sutter pushed back on Trump’s view that Switzerland was responsible for the US losing $40 billion because of its goods trade surplus, the US president was frustrated that his concerns weren’t addressed.
But following last week’s visit of what Trump called “high level Representatives of Switzerland,” he ordered US Trade Representative Jamieson Greer to schedule follow-up negotiations.
Those talks have now pushed Switzerland close to securing a 15% tariff on its exports to the US.
