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.
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.
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In The Wake Of The Iran War The U.S. Must Produce More Energy—Not Less
A small compressor station for a 12′ liquified natural gas (LNG) pipeline in Spanish Valley, near Moab, Utah. (Photo by: Jon G. Fuller/VW Pics/Universal Images Group via Getty Images)
VW Pics/Universal Images Group via Getty Images
The Mideast turmoil is once again reminding Americans of a hard truth: Energy security is economic security. When the Middle East trembles, Americans at home feel it at the gas pump, in utility bills and throughout the broader economy.
The national average for a gallon of regular gasoline is around $4.50—a painful jump, even if it’s still lower than the prices in many other countries. President Trump has assured Americans that prices will return to normal as the conflict in the Middle East subsides. History suggests that’s likely. But the real lesson is larger than one temporary price spike.
The U.S. must produce more energy. Period. For too long, Washington pursued what can only be described as a policy of energy subtraction: restricting production, slow-walking permits, strangling infrastructure and pretending that bureaucratic mandates could replace abundant supply. That approach doesn’t lower prices; it raises them. It doesn’t strengthen America; it weakens us.
The Trump Administration has wisely moved in the opposite direction. That means unlocking our vast energy resources, expanding production, building pipelines, approving infrastructure and increasing exports to allies who need reliable alternatives to hostile regimes.
Liquefied natural gas (LNG) is a prime example. In just its first decade as a major American industry, LNG has become a remarkable economic success story. It supports tens of thousands of jobs along the Gulf Coast and in nearly 40 states. It generates substantial tax revenue for local communities. It has contributed nearly $500 billion to the American economy.
Just as important, LNG has become a pillar of U.S. national security. During the Iran conflict—and especially as LNG facilities in Qatar came under assault—American LNG helped keep energy flowing to allies overseas. That’s what energy dominance looks like. It’s not a slogan; it’s a strategic asset.
Predictably, opponents of energy abundance continue to claim that LNG exports raise prices for American consumers. This argument has been disproven by a decade of real-world evidence.
Energy prices are shaped by many factors: supply and demand, weather, infrastructure constraints and geopolitical shocks. Temporary spikes can happen, especially during conflicts like Russia’s invasion of Ukraine or turmoil in the Middle East. However, the broader American story is one of abundant, affordable natural gas.
Since the first U.S. LNG cargo was exported a decade ago, American natural gas production has surged. LNG exports have grown by roughly 16 billion cubic feet per day since 2016, but domestic production has grown by about twice that amount. That’s why Americans continue to enjoy some of the lowest residential natural gas prices in the world.
Prices of LNG have remained stable, recently hovering near $2 despite geopolitical turbulence. Over the past decade, average prices have been more than 50% lower than before LNG exports began. That’s not a record of scarcity; It’s a record of abundance. The lesson is simple: Markets work when government gets out of the way.
Those genuinely concerned about affordability should support more U.S. energy production, not less. Burdensome “green” regulations, endless permitting delays and hostility toward pipelines don’t protect consumers. They impose costs on utilities, discourage investment and reduce supply. Inevitably, consumers pay the bill.
The international stakes are just as clear. The U.S. is now the world’s largest exporter of LNG, giving Europe and other allies a vital alternative to Russian energy. If America pulls back, Russia and unstable Middle Eastern suppliers will gladly fill the void. That would raise global energy risks and, ultimately, put upward pressure on prices here at home. Energy weakness invites economic pain and geopolitical danger. Energy abundance delivers jobs, lower costs, stronger allies and a more secure America.
As the midterms approach, lawmakers in both parties should focus on the policies that actually bring down prices: expand energy infrastructure, approve pipelines, streamline permitting, reduce unnecessary restrictions and produce more energy at home while exporting more to our friends abroad.
The answer to volatile global energy markets isn’t to retreat from American energy leadership; it’s to double down on it. The U.S. has the resources, workers and technology to lead. What it needs now is the political will to do so.
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