“You have to stage deals with Trump – not negotiate”

Thomas Borer, former head of the Swiss World War II Task Force, advocates unconventional diplomacy in dealing with US President Donald Trump. Instead of relying on traditional trade policy, Switzerland should score points with symbolic offers and quick, personal contacts in order to avert an impending tariff war .

thebrokernews spoke to Dr. Thomas Borer, former Swiss ambassador to the Federal Republic of Germany, about the right diplomacy in dealing with Donald Trump. The current developments in the USA have far-reaching consequences for all sectors, including the insurance industry.

The US President does not think in terms of multilateral agreements, but in terms of personal victories that he can sell as “deal-makers”. This is what Thomas Borer says in an interview, outlining a strategy on how Switzerland could limit economic damage in a second Trump mandate. His recipe: buy weapons, oil, gas or beef, announce targeted investments in the USA, use pharmaceutical prices as a bargaining chip and rely on door openers who have access to the president. Speed, staging and the courage to throw classic diplomatic rules overboard are crucial.

Thomas Borer, In a recent interview, you suggested that Switzerland should buy unconventional products such as weapons, oil, gas or beef in order to convince Donald Trump to make a customs deal. Can you please explain in more detail why this combination might make sense?

Because Trump is not interested in traditional trade policy, but in personal victories that he can sell domestically. He wants to present deals where he can say: “I created jobs for America.” Weapons, oil, gas and beef are symbolic goods in US politics – they stand for strength, energy independence and agriculture. When we buy such products, we give him exactly the image he needs to project to his voters. And conversely, Switzerland has to import oil and beef anyway and buy weapons to arm its army. These are modest concessions for us.

They cited critical reaction times: “a 72-hour race” was necessary to arm themselves against the 39 percent tariffs. Why was quick action so crucial?

Because you can’t wait until Monday in situations like this just because it’s the weekend or a public holiday. I would have boarded the plane immediately. In foreign policy, every hour counts. The Federal Council looks at many things through the lens of domestic policy, but this is about international power politics and there’s no time to lose. The world does not follow the Swiss government’s agenda.

What advantages does FIFA President Gianni Infantino have as a mediator?

Infantino has a personal relationship with Trump, and in the Trump universe, personal sympathies often count for more than official channels. He could open doors that obviously remain closed to Swiss diplomats. In Washington, a good door opener is sometimes more valuable than a dozen position papers. That is why I have long and often suggested that the Swiss Confederation should mandate a professional lobby agency in Washington.

You suggested holding out the prospect of investments of over 100 billion or offering a free trade agreement. How realistic would such a scenario be?

Very realistic. The EU has negotiated in exactly the same way: Companies have publicly announced that they are investing in the USA. Swiss pharmaceutical and industrial groups have already mentioned sums of this magnitude, but unfortunately in an uncoordinated manner and without Switzerland having “sold” this to the White House as a “deal”. The decisive factor is the targeted communication of these intentions in order to send a political signal that Trump can use to his advantage. Unfortunately, a free trade agreement seems impossible for the foreseeable future. We missed the opportunity to do so under previous presidents and during Trump’s first term in office.

Why do you see pharmaceutical products as a valuable lever in the negotiations, and how could this trump card be used in practice?

Trump wants to lower drug prices in the USA and is threatening to impose tariffs of up to 250 percent. If the proposal for price reductions or alternative supply models comes from our side, he can present it as his own success. He made this promise during the election campaign. We must play an active role in shaping this issue before he implements it unilaterally and we lose this trump card too.

In an interview with Blick, you emphasized that personal relationships in the USA are crucial and that these are not currently available. What could the Federal Council have done better in recent years to build such relationships?

When my assignment as head of the Task Force ended in 1999, we made a number of recommendations to strengthen bilateral relations with the USA. You can read my proposals in Volume 5 of my recently published book “The Swiss Task Force World War II”. The FDFA then took action on some of them, but our efforts gradually petered out again, especially at the Swiss embassy in Washington. The fact is that during the dispute over our banking secrecy in 2008/9 and now again, we do not have viable networks. It’s difficult to build them up during a crisis. The Americans say: “Three o’clock in the morning is a bad time to make friends.” If you only call when there’s a fire, you don’t have the same access as someone who has been in contact for years.

You thought the trip by President Keller-Sutter and Federal Councillor Parmelin was the right thing to do, but too late in terms of timing. In your opinion, what would have been an optimal moment and why?

Right after the UK had reached an agreement with the USA – Trump could have sold a “deal” with Switzerland as a success. Or at the end of July in Scotland, when Trump also met EU Commission President van der Leyen there. In a relaxed atmosphere, before a public customs announcement, he could have been won over with an attractive deal approach. After the official announcement, there is much less room for maneuver.

Given your experience with the Task Force Switzerland – Second World War, what diplomatic lessons do you draw from this period that could be relevant today?

Above all, the classic diplomatic rules do not apply when dealing with personalities like President Trump. You have to act pragmatically and sometimes opportunistically; Trump sees himself as a businessman and deal-maker. He does not allow himself to be lectured. He values personal contacts. Therefore, you have to win over people for your own purposes who have Trump’s trust. Furthermore, Trump pays very close attention to the media. It is advisable to make the Swiss position known via conservative US media.

Do you see potential for a more sustainable approach, for example through bilateral agreements or institutional reforms, in order to counter future economic pressure from the USA?

Until the end of the Trump presidency and probably beyond, there will be no rules-based, sustainable trade order à la WTO with the USA. Every day is good for a surprise. Trump has allowed the world to be split up into individual negotiations according to the motto “divide et impera” – and the powerful USA is winning. Real resistance to US mercantilism would only have been possible if Europe, Asia and Latin America had joined forces and stood up to Trump. However, the differences between these groups of countries were too great for this.

Borer leaves no doubt: with Trump, it is important to think in images, not in paragraphs. Those who provide him with successes that he can stage in a media-effective way will gain influence – those who rely on routine and bureaucracy will lose. Switzerland must now establish networks in Washington, prepare strategic offers and be prepared to act in hours rather than weeks. Because in Borer’s words: “The world does not follow the Federal Council’s agenda.”

The interview was conducted by Binci Heeb, Editor-in-Chief.

Dr. Thomas Borer was born on 29 July 1957 in Basel. He studied at the Faculty of Law at the University of Basel and was awarded “summa cum laude” in 1985. Subsequently he gained professional experience in the private sector, including as a legal advisor and in investment consulting at Credit Suisse. In 1987, he joined the Federal Department of Foreign Affairs (FDFA) as a diplomat. He was transferred to the Swiss Embassy in Washington as Head of Political and Legal Affairs in 1993. In 1996, he was appointed Head of the “Switzerland – Second orld War”Task Force by the Swiss Federal Council, which dealt with the role of Switzerland as a financial centre during the time of the Nazi regime. On this occasion, Dr. Thomas Borer was awarded the title of ambassador. When the task force was dissolved, he was appointed Swiss Ambassador to the Federal Republic of Germany in 1999. At the end of April 2002, he left civil service and founded his own company, which he successfully leads ever since.

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