• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

College-educated women are snapping up the highest-earning men without college degrees, leaving the rest further behind

2

New York City women are making up to $30,000 per month by renting out their closets to strangers

3

An 11-year-old is cleaning his neighbors' trash cans for $10 each—he now has 100K followers as teens face the worst summer job market since 1948

1

College-educated women are snapping up the highest-earning men without college degrees, leaving the rest further behind

2

New York City women are making up to $30,000 per month by renting out their closets to strangers

3

An 11-year-old is cleaning his neighbors' trash cans for $10 each—he now has 100K followers as teens face the worst summer job market since 1948
North AmericaWhite House

This is no way to treat our Swiss friends

By
Richard W. Rahn
Richard W. Rahn
Down Arrow Button Icon
By
Richard W. Rahn
Richard W. Rahn
Down Arrow Button Icon
May 27, 2026, 5:00 AM ET
tt
US President Donald Trump arrives for a bilateral meeting with Switzerland's President on the sidelines of the World Economic Forum (WEF) annual meeting in Davos on January 21, 2026. The World Economic Forum is taking place in Davos from January 19 to January 23, 2026.LAURENT GILLIERON / POOL / AFP via Getty Images
Add Fortune on Google for similar content.

The Trump administration is preparing to investigate Switzerland under Section 301 — the same trade enforcement tool used against China. That tells you almost everything you need to know about how Washington has lost the plot on trade policy.

Recommended Video

These investigations, launched after the Supreme Court invalidated earlier tariff measures, could serve a legitimate purpose. Done properly, they could help identify countries that genuinely cheat the system. Done poorly, they could damage America’s closest economic relationships and weaken the very economy they are supposed to strengthen.

As someone who has spent decades advising governments and businesses around the world, I have learned that trade deficits alone tell us very little. Yet in Washington, many still speak as if every bilateral trade deficit is proof that America is being victimized. That is simply not true.

Take Switzerland, a country I know well and admire greatly.

In 2024, the United States imported roughly $38 billion more in goods from Switzerland than Switzerland imported from America. Many politicians immediately see such numbers and conclude foul play must be involved. But economics is not that simple. Once services are included, Switzerland actually bought about $30 billion more in American services than it sold to the United States. The net imbalance amounted to roughly $8 billion — about the cost of a cup of coffee per American per month.

Hardly a national emergency.

More importantly, Switzerland is one of the fairest trading nations in the world. It imposes no tariffs on industrial goods and allows virtually all American products to enter duty-free. Unlike many countries, Switzerland does not prop up large sectors of its economy with massive industrial subsidies or state-owned enterprises. The one major exception is agriculture — and that policy has historical roots dating back to World War II, when the Swiss learned the hard way that food security matters for small countries surrounded by hostile powers.

The reality is that Americans buy Swiss goods because they want them. Swiss companies produce some of the world’s best pharmaceuticals, medical technologies, precision instruments, and consumer products. Swiss businesses have earned an extraordinary global reputation for quality and reliability. There is a reason Switzerland has one of the world’s highest concentrations of globally successful companies.

But what many Americans do not realize is how deeply Swiss investment benefits the United States itself. Over the past two decades, trade between the United States and Switzerland has multiplied several times over. Switzerland is now among the largest foreign investors in America. Swiss companies support nearly 400,000 American jobs — an astonishing number for a nation of only about nine million people. These are not abstract statistics. They represent factories, research centers, laboratories, supply chains, retirement accounts, and middle-class livelihoods across the United States.

Which raises an important question: Why would Washington want to punish one of its best economic partners?

There are certainly countries engaging in predatory trade behavior. China’s long record of subsidies, intellectual property abuses, forced technology transfers, and market restrictions is well documented. Some countries manipulate taxes or regulations in ways that disadvantage American workers and businesses. But Switzerland is not China.

In fact, Switzerland has behaved exactly as American policymakers say they want responsible countries to behave. When earlier U.S. tariffs were announced, the Swiss government deliberately chose not to retaliate. Instead, Swiss officials publicly expressed their desire to negotiate fairly and maintain strong bilateral economic relations.

That should matter enormously to Washington. Switzerland did everything right. It is about to be punished anyway.

One of the first lessons of economics is that incentives shape behavior. If countries that cooperate with the United States are treated exactly the same as countries that exploit the system, then America creates incentives for more conflict, not more cooperation. Trade policy should resemble intelligent statecraft, not a medieval blood feud in which every nation — friend or adversary — is treated as an enemy.

The credibility of the Section 301 process will depend entirely on whether investigations are conducted honestly or merely used to justify predetermined political outcomes. If Washington wishes to encourage reform abroad, it must be willing to reward countries that follow fair-market principles while confronting those that do not.

Switzerland is not part of the problem. In many respects, it represents part of the solution. Rather than treating Switzerland as a target, Washington should be asking why more countries don’t behave like it. And if it punishes Switzerland for doing everything right, it will have answered its own question about why more countries don’t bother.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
About the Author
By Richard W. Rahn
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in North America

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in North America

cb
C-SuiteRestaurants
Cracker Barrel CEO steps down nearly a year after logo change inflamed Trump country
By Dee-Ann Durbin and The Associated PressJuly 27, 2026
2 hours ago
t
North AmericaWhite House
The new Air Force One controversy is really about a 90-year power struggle over presidential travel
By Peter Kastor and The ConversationJuly 27, 2026
4 hours ago
Photo of Tobias Lütke
C-SuiteTaxes
Why did a $154 billion CEO just endorse stripping most Americans of voting rights—and taking us back to the 19th century?
By Nick LichtenbergJuly 27, 2026
4 hours ago
Photo of Oprah Winfrey
SuccessCareers
Oprah Winfrey says ‘Life starts at 44’—and research proves she’s right: The average founder starts their business after 40
By Emma BurleighJuly 27, 2026
5 hours ago
A fan is pointed towards a classroom full of students in a school.
Environmentschools
Rising temperatures are putting students at risk of heat-related illnesses, and schools are scrambling to adapt
By The Conversation, Allison Poulos and Jennifer VanosJuly 27, 2026
5 hours ago
U.S. to reopen border to Mexican cattle imports after screwworm ban
North AmericaMexico
U.S. to reopen border to Mexican cattle imports after screwworm ban
By The Associated PressJuly 27, 2026
6 hours ago

Most Popular

College-educated women are snapping up the highest-earning men without college degrees, leaving the rest further behind
Economy
College-educated women are snapping up the highest-earning men without college degrees, leaving the rest further behind
By Mia OsmonbekovJuly 26, 2026
1 day ago
New York City women are making up to $30,000 per month by renting out their closets to strangers
Retail
New York City women are making up to $30,000 per month by renting out their closets to strangers
By Sarah GlodekJuly 27, 2026
13 hours ago
An 11-year-old is cleaning his neighbors' trash cans for $10 each—he now has 100K followers as teens face the worst summer job market since 1948
Success
An 11-year-old is cleaning his neighbors' trash cans for $10 each—he now has 100K followers as teens face the worst summer job market since 1948
By Orianna Rosa RoyleJuly 25, 2026
2 days ago
The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
Real Estate
The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
By Nick LichtenbergJuly 25, 2026
2 days ago
I've been teaching college students for decades. Most of them can no longer finish a book
Commentary
I've been teaching college students for decades. Most of them can no longer finish a book
By Austin SaratJuly 26, 2026
1 day ago
One-third of Seattle's downtown is empty: Here's how America's boomtown turned into one of the toughest places to find a job
Real Estate
One-third of Seattle's downtown is empty: Here's how America's boomtown turned into one of the toughest places to find a job
By Nick LichtenbergJuly 27, 2026
12 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.