In brief
The United States and Switzerland have reached an agreement to cut steep tariffs imposed on Swiss exports from 39% to 15%. This deal, which includes a $200 billion investment from Switzerland into the US economy, follows meetings between Swiss business leaders and President Trump, where gifts such as a Rolex watch played a notable role. Swiss Economics Minister Guy Parmelin expressed relief over the agreement, highlighting the significant economic impact of the initial tariffs. The deal awaits approval from the Swiss parliament before implementation.
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 said a move by Swiss business leaders to meet Trump in the White House last week had proved decisive in reaching a deal.
Industry chiefs visited the Oval Office, bearing gifts including a Rolex gold watch and a specially engraved gold bar from Swiss-based gold refining company MKS.
Initial attempts by Swiss President Karin Keller Sutter to change Trump's mind had fallen on deaf ears. Trump said she was a nice woman, but she did not want to listen.
But after the 4 November encounter with Swiss business leaders, Trump revealed this week a deal was being worked on.
US Trade Representative Jamieson Greer confirmed an agreement had been reached, saying President Trump's unmatched dealmaking continues to deliver for the American people.
The deal had involved very hard work, said chief trade negotiator Helene Budliger Artieda. Guy Parmelin said it would bring Switzerland into line with the 15% tariff rate negotiated with the US by its European Union neighbours.
The economics minister said it involved the Swiss economy investing $200bn directly in the US by 2028. A third of that Swiss money will be invested in the US in 2026 under the deal.
Switzerland has also agreed to axe tariffs on a quota of US meat exports including beef, bison and poultry.
Greer said the deal tears down longstanding trade barriers and Swiss investment would bring thousands of new jobs.
For Swiss industry, the deal could not come soon enough. Tech exports to the US are down 14.2% on the third quarter of last year, according to latest statistics - a dramatic fall since the tariff hike was imposed in August.
Swiss industry has been waiting for a deal with bated breath and several companies warned they would have to furlough staff if nothing changed. Yves Bugmann, who heads the Swiss Watch Industry Federation, welcomed the deal after months of uncertainty.
A detailed list of investments includes pharmaceuticals, with plans for plane manufacturer Pilatus to build a big US plant and train-maker Stadler to expand its US operations in Utah, along with gold refining operations.
The agreement awaits approval from the Swiss parliament, after which it will be put to a referendum.
