Switzerland has entered into a customs dispute with United States of America agreed. In the future, this country, like the European Union, will be able to export to America with tariffs reduced by 15 percent. Economy Minister Guy Parmelin spoke about the success of the Swiss economy. In return, Switzerland promised that private companies would invest $200 billion in the United States by 2028, as Parmelin announced. Sovereignty over investments remains with Switzerland.
Since August, the figure in Switzerland has reached 39 percent, which US President Donald Trump justified by referring to a billion-dollar bilateral trade deficit. The new rates should be implemented “as soon as possible,” Parmelin said. It is important for Switzerland to catch up with the EU because it is concerned that it will suffer a competitive disadvantage compared to its European competitors.
Parmelin traveled to Washington with Federal President Karin Keller-Sutter in September, but in vain. They made no promises to Trump. In his second brief visit to Washington this week, he negotiated the deal with Trade Representative Jamieson Greer. The new talks got underway after representatives of top Swiss companies welcomed Trump at the White House at the start of the month, including Rolex and luxury goods group Richemont. A few days later, a photo of the president’s desk in the Oval Office showed a gold Rolex desk clock and an engraved gold bar. According to the BBC, the US presidential office later confirmed both gifts.
US exports plummeted
Tariff reductions are particularly important for the watch, machinery, electrical and metals industries. According to industry association Swissmem, US exports fell 14.2 percent in the third quarter compared to the same quarter a year earlier. For machine tools it is even 43 percent less. Regarding watches, exports to the US fell 56 percent in September, after around 20 percent in August.
Swissmem, which represents the machinery industry, among others, welcomed the agreement. “This means momentary relief – but there can be no doubt that everything is sorted,” the association said. “Many factors continue to have a negative impact on opportunities for the Swiss export industry.”
Pharmaceutical products are exempt from tariffs. These products account for 60 percent of Swiss exports. Trump also threatened to impose high tariffs on medicines. The largest pharmaceutical companies Novartis and Roche, which generate most of their profits in the US, have announced investments worth billions of dollars in expanding their US locations.
