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, highlighting the significant damage done since the tariffs were enacted in August. Parmelin noted that a meeting between Swiss business leaders and Trump proved decisive in reaching this agreement. Industry chiefs brought gifts including a Rolex watch and a gold bar from MKS, a gold refining firm.
Initially, efforts by Swiss President Karin Keller Sutter to negotiate with Trump were ineffective, as he later remarked, she was a nice woman, but she did not want to listen. However, following the meeting of Swiss executives on November 4, Trump confirmed that a deal was being formulated.
US Trade Representative Jamieson Greer described the deal as a result of President Trump's unmatched dealmaking, aiming to enhance economic relations. The agreement sets the tariff at 15%, which aligns with rates negotiated by EU countries. Parmelin also mentioned that the deal entails Swiss investments in various sectors, including pharmaceuticals and the operations of manufacturers like Pilatus and Stadler in the US by 2028.
Additionally, Switzerland has agreed to eliminate tariffs on a quota of US meat exports, including beef and poultry. This deal comes at a critical time, as Swiss tech exports to the US have reportedly declined by 14.2% since the tariff increase. Industry representatives expressed relief, emphasizing the urgency for a resolution as workforce adjustments loomed under the ongoing economic strain.
The agreement is pending approval from the Swiss parliament and will eventually be subject to a public referendum. With impending changes aimed to revitalize trade, the upcoming adjustments are highly anticipated both in Switzerland and the US.
Initially, efforts by Swiss President Karin Keller Sutter to negotiate with Trump were ineffective, as he later remarked, she was a nice woman, but she did not want to listen. However, following the meeting of Swiss executives on November 4, Trump confirmed that a deal was being formulated.
US Trade Representative Jamieson Greer described the deal as a result of President Trump's unmatched dealmaking, aiming to enhance economic relations. The agreement sets the tariff at 15%, which aligns with rates negotiated by EU countries. Parmelin also mentioned that the deal entails Swiss investments in various sectors, including pharmaceuticals and the operations of manufacturers like Pilatus and Stadler in the US by 2028.
Additionally, Switzerland has agreed to eliminate tariffs on a quota of US meat exports, including beef and poultry. This deal comes at a critical time, as Swiss tech exports to the US have reportedly declined by 14.2% since the tariff increase. Industry representatives expressed relief, emphasizing the urgency for a resolution as workforce adjustments loomed under the ongoing economic strain.
The agreement is pending approval from the Swiss parliament and will eventually be subject to a public referendum. With impending changes aimed to revitalize trade, the upcoming adjustments are highly anticipated both in Switzerland and the US.
