Quick Takeaways:
- US tariffs on Swiss imports will drop from 39% to 15%.
- The deal aims to reduce the $38B US trade deficit with Switzerland.
- Lower tariffs may cut prices for US buyers of Swiss goods.
US Announces Major Tariff Reduction
The Trump administration will sharply reduce tariffs on Swiss imports. The Swiss government confirmed the news after meeting US Trade Representative Jamieson Greer.
The tariff cut lowers the rate from 39% to 15%, marking one of the administration’s largest trade policy reversals.
Trade Deal Targets US Manufacturing Growth
Greer said the company aims to push more high-time value manufacturing into the United States.
He played up incoming Swiss investment funds in pharmaceutic, Au smelting, and railway equipment.
Swiss Goods Could Become Cheaper in the US
Swiss exports like wristwatches and medical equipment may soon cost less for American buyers.
Gold imports were excluded from the earlier tariff regime, but other Swiss goods faced heavy costs.
US Seeks to Reduce Trade Deficit
The United States recorded a $38 billion trade deficit with Switzerland last year.
Greer said the new agreement intends to shrink that gap by stimulating US-based production.
Tariffs Were Much Lower Before the Second Trump Term
Before Trump’s second term, most Swiss goods faced tariffs between 0% and 2.5%.
The previous spike to 39% triggered concerns across Swiss and US industry groups.
Details Expected Later Today
More information about the understanding will be released on Friday. Manufacturing experts expect the deal to reshape trade flows between the two long-tolerant economic partners.