In brief
In a landmark agreement, the United States has decided to cut tariffs on Swiss exports from a steep 39% to 15%. This deal, which involves a Swiss commitment to invest $200 billion in the U.S., follows a successful charm offensive by Swiss business leaders who engaged directly with President Trump. The agreement is set to revitalize Swiss exports and marks a significant shift in trade relations between the two nations.
Switzerland and the US have agreed to cut President Donald Trump's steep 39% tariffs on Swiss exports to 15%, as part of a deal that involves a Swiss promise to invest $200bn (£150bn) in the US.
It's a great relief for our economy, said Swiss Economics Minister Guy Parmelin, who remarked on the significant damage caused since the tariffs were imposed last August.
Parmelin noted that discussions with Swiss business leaders who visited Trump at the White House last week were instrumental in reaching this agreement.
The business delegation brought gifts including a Rolex gold watch and a specially engraved gold bar from Swiss-based MKS, a luxury goods company.
Initial attempts from Swiss President Karin Keller Sutter to negotiate changes to the tariffs were unsuccessful; Trump labeled her as a nice woman but indicated that she didn’t grasp his motivations.
However, after the 4 November meeting with business representatives, Trump announced that negotiations were ongoing.
US Trade Representative Jamieson Greer confirmed the agreement, stating that President Trump's unmatched dealmaking continues to deliver for the American people and emphasized that the deal will lead to new jobs.
Under the new deal, Switzerland will also eliminate tariffs on certain US meat exports, including beef and poultry, bringing it in line with the tariff rates previously negotiated with the EU.
With a notable 14.2% decline in US-bound tech exports from Switzerland, expectations for this deal were high. Swiss businesses had warned of potential staff furloughs if no agreement was reached.
The primary sectors benefiting from this investment include pharmaceuticals and manufacturing plants, as well as gold trading operations, leveraging Switzerland's status as a key location for gold storage and trading.
While the details surrounding specific investments are forthcoming, plans are underway for additional Swiss manufacturing facilities in the US.
The agreement's next steps involve approval from the Swiss parliament before a public referendum, ensuring that it meets national standards and expectations.
