Working confidently in partnership

US President Donald Trump’s recent remarks – claiming that Switzerland benefits from American goodwill and that a phone conversation with the former President of the Swiss Confederation Karin Keller-Sutter prompted him to raise tariffs – also caused a stir among Swiss Abroad.

What do crosswinds like these mean for bilateral relations? And how should they be understood in a historical context?

Sister republics

The ties between Switzerland and the United States go back a long way. As early as the 18th and 19th centuries, the two countries were already taking note of each other’s political ideas. The Swiss Federal Constitution of 1848 incorporated key elements of the US Constitution – particularly in terms of the structure of the federal state with its division of powers.

Both countries regard themselves as republics boasting a strong civic tradition. Whereas the president embodies the executive authority in the US, executive power in Switzerland is distributed among the Federal Council, with the office of president passing to a different member each year. This distinction also influences the tone and the manner in which politics is conducted.

Swiss diaspora, cultural affinity

The US is not only a trading partner – it is also home to many Swiss Abroad. Tens of thousands of Swiss emigrated to North America in the 19th century. New Glarus in Wisconsin is just one place where that legacy remains evident to this day.

The vibrant Swiss-American community now forms an important bridge between the two countries – sustained by club activities, cultural events and economic networks.

Economic ties

Switzerland invests a great deal in the United States, with Swiss companies employing hundreds of thousands of people across the pond. Multinationals like Roche and Novartis invest billions in their US research and manufacturing footprints.

The trade deficit emphasised by the American side – recently put at around 40 billion US dollars – mainly relates to goods exports, particularly from the pharmaceutical sector. At the same time, the flow of investments and services in the opposite direction is substantial.

For an export-driven economy like Switzerland, the US market continues to play a key role. Vice versa, many US states benefit from Swiss direct investment.

Neutrality and diplomacy

Switzerland represents American interests in several countries where the US has no diplomatic presence of its own. These mandates speak of mutual trust and underscore Switzerland’s special role as a neutral country.

Decision-makers from both countries also meet regularly to share their views in multilateral settings like the World Economic Forum.

An enduring relationship

Political tensions are nothing new in international relations. Even so, the Swiss-US relationship has shown remarkable continuity over time. Shared democratic values, economic interdependence, and human connections provide a solid foundation.

For the 85,000 or so Swiss in the United States as well as the many US citizens with Swiss roots, this partnership will always be more than just a question of tariffs – reflecting a shared history and an ongoing dialogue between two federal republics.