In brief
The US has agreed to lower tariffs on Swiss exports from 39% to 15%, following a deal that commits Switzerland to invest $200 billion in the US economy by 2028. Swiss Economics Minister Guy Parmelin hailed the agreement as a relief for the economy after previous tariffs had harmed exports. The pivotal moment came during a meeting between Swiss business leaders and President Trump, where gifts, including luxury items, were presented to facilitate negotiations. The deal also allows Swiss investments in various sectors and includes cuts on tariffs for US meat exports.
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 said significant damage had been done since the additional tariffs had kicked in last August.
Parmelin noted that a meeting between Swiss business leaders and Trump in the White House, where they presented gifts including a Rolex watch and a gold bar, was crucial for reaching the agreement.
Initial diplomatic efforts by Swiss President Karin Keller Sutter had been unsuccessful, with Trump previously describing her as a nice woman who did not want to listen. However, following the 4 November encounter with the business leaders, Trump indicated progress was being made.
US Trade Representative Jamieson Greer confirmed the agreement and emphasized its potential to create thousands of jobs through Swiss investment in the US. The deal also aligns Switzerland's tariff rate with that of EU nations, and Switzerland has agreed to eliminate tariffs on a set amount of US meat exports.
The agreement, which is expected to be ratified by the Swiss parliament and possibly put to a referendum, is vital for Swiss industries that have reported declines in exports due to the tariffs.
Yves Bugmann, head of the Swiss Watch Industry Federation, welcomed the deal after a prolonged period of uncertainty, while details of the investment include plans for major manufacturing expansions and contributions to the US gold market.
Ultimately, the deal signifies a turning point in US-Swiss relations, with both nations eager to capitalize on the economic opportunities presented.
