In a significant move for transatlantic commerce, the United States has agreed to substantially reduce its tariffs on Swiss goods as part of a new trade understanding. The agreement, struck with the Trump administration, sees import duties plummet from a hefty 39% down to a maximum of 15%.
The Details of the Agreement
The breakthrough was confirmed by both the Swiss government and the US Trade Representative, Jamieson Greer, following bilateral talks in Washington. The two nations signed a non-binding memorandum of understanding, a type of pact the Trump administration has favoured for its narrow focus and quicker negotiation time compared to comprehensive free trade agreements.
Crucially, this reduction brings US tariffs on Switzerland and Liechtenstein in line with those imposed on the European Union. This levels the playing field for Swiss exporters, who had been at a disadvantage compared to their rivals in neighbouring EU countries.
Switzerland's Concessions and Corporate Lobbying
In exchange for the tariff cut, Swiss officials have committed to a series of measures improving market access for American products. Switzerland will reduce its own tariffs on a range of US goods, including all industrial products, fish, seafood, and agricultural products it deems non-sensitive.
Furthermore, Switzerland has granted specific duty-free quotas for key US exports. These include 500 tonnes of beef, 1,000 tonnes of bison meat, and 1,500 tonnes of poultry. The precise timing for implementing these new tariffs and quotas is still being coordinated between the two nations to ensure a simultaneous rollout.
The deal was finalised after intense lobbying by Swiss firms and a meeting between leading Swiss executives and President Trump at the White House earlier this month. The Swiss government announced that companies from the country are planning direct investments in the US worth $200 billion by the end of 2028.
Broader Implications and Reactions
US Trade Representative Jamieson Greer expressed strong optimism about the deal's impact, claiming it would bring significant manufacturing to the United States in sectors like pharmaceuticals and railway equipment.
The negotiations were not without their lighter moments. Jean-Frederic Dufour, the CEO of Rolex, disclosed that after the luxury watchmaker invited President Trump to the US Open final, the President jokingly asked if the invitation was related to the tariffs, a comment that brought laughter from those present. Following the meeting, Trump was reportedly gifted a golden table clock from Rolex and an engraved gold bar from another firm.
This agreement represents the latest in a series of framework trade deals pursued by the Trump administration, marking a continued shift in US trade policy towards bilateral agreements.
