Today's Edition
WASHINGTON (AFP)
The United States and Switzerland said Friday that they have reached an agreement to sharply lower tariffs imposed by President Donald Trump, with the Alpine nation vowing to invest $200 billion in the US to win over the White House.
The deal was announced a day after talks in Washington, where Swiss economy minister Guy Parmelin visited in hopes of easing steep duties the Trump administration rolled out this year.
Trump slapped an added 39-percent duty on imports of goods from the country. The latest framework agreement brings this tariff down to 15 percent for Switzerland and Liechtenstein products, the White House said.
The new rate will serve as a ceiling for goods previously tariffed at lower levels, while goods already facing tariffs above 15 percent will not be additionally hit -- similar to US deals with other key partners.
"We've essentially reached a deal with Switzerland," US Trade Representative Jamieson Greer told CNBC in an interview.
He added that the Swiss would send manufacturing, such as pharmaceuticals, gold smelting, and railway equipment, to US shores.
A White House statement said the countries hope to conclude their full pact by the first quarter of 2026.
As part of the deal, "Swiss companies intend to make $200 billion in direct investments in the United States by the end of 2028," a Swiss government statement said. This would also include efforts to strengthen vocational education and training.
The high tariff rate has jeopardised sectors of the export-heavy Swiss economy, notably watchmaking and industrial machinery, as well as chocolate and cheese.
The pharmaceutical industry, Switzerland's largest export sector, enjoys exemptions from these sweeping tariffs.
The latest deal brings some relief by committing that pharmaceutical goods and semiconductors of Switzerland and Liechtenstein face a maximum tariff of 15 percent if Washington were to impose fresh duties on these sectors.
In turn, both countries intend to remove some tariffs across agriculture and industrial sectors, including on various nuts, fish, and seafood, the White House added. They also plan to refrain from imposing digital services taxes, the US statement said.
Parmelin said Friday that discussions will continue for key products like industrial machinery, steel, aluminum, coffee, and cheese.
Last week, the heads of six top Swiss firms, including watchmaker Rolex and luxury goods giant Richemont, met with Trump to plead for relief from the tariffs.
Yves Bugmann, president of the Federation of the Swiss Watch Industry, said the announced tariff reduction was good news for an industry facing challenges.
