The United States and Switzerland have “in principle” reached a trade deal that lowers tariffs on Swiss goods from 39% to 15%, and the White House is expected to release further details later on Friday, U.S. Trade Representative Jamieson Greer said.
- Understand: Why was Switzerland hit with one of the Trump administration’s biggest tariffs?See the list of people whose fares went up and who went down.
- Light at the end of the tunnel: Find out why exporters are already expecting US coffee tariffs to fall from 50% to 10%.
The pending deal provides long-awaited relief to Switzerland, which has been hit by the Trump administration’s highest tariffs on a developed country. Guria told reporters that the 15% tariff includes the most-favored-nation rate and other existing charges, and its structure is similar to that applied in the European Union.
In return, Switzerland has pledged to invest $200 billion in the United States during President Donald Trump’s term, including $70 billion next year, in areas such as pharmaceuticals and gold refining, Greer said. Switzerland has also committed to purchasing more commercial aircraft from Boeing, the US Trade Representative added.
—A basic agreement has been reached with Switzerland. So we’re going to be announcing more details on the White House website today, Greer said in an interview with CNBC.
The deal is the culmination of months of intense negotiations by Swiss officials and business leaders after major Swiss sectors including watches, machinery and precision equipment were hit hard by U.S. tariffs.
- See the changes: Swiss chocolate will be tax-free thanks to new Mercosur agreement
The base interest rate was already expected to be 15%. Bloomberg previously reported that both sides were close to that number. President Trump later acknowledged that officials were “working toward an agreement.”
Mr. Greer said Switzerland is “looking to move a lot of manufacturing to the United States, including pharmaceuticals, gold smelting, and railroad equipment.”
— So we’re very excited about this deal and what it means for American manufacturing.
The progress ends a months-long dispute that began in August, when President Trump surprised Bern by imposing 39% tariffs on Swiss exports, more than double the tariffs applicable to the EU. Swiss President Karin Keller-Sutter rushed to the United States to woo President Trump without a formal invitation from the White House to meet with the American president. But Kalin left Washington empty-handed, without achieving a reduction in the tariffs imposed on her country by the US president.
The move, which the Trump administration justified as a response to a $40 billion trade deficit in goods, surprised Swiss officials who believed they had already reached an agreement with their US interlocutors.
About The Author
