Switzerland Wins 15% US Tariff Cut
Synopsis
In an official statement, the Swiss government said that the tariff agreement will reduce Swiss import duties on US industrial products, fish and seafood and agricultural products. According to the deal, the US would impose only a 15 per cent tariff ceiling for Swiss pharmaceutical producers and semiconductors. Apart from this, Switzerland would grant the US duty-free bilateral tariff quotas on 500 tons of beef. Also, 1,000 tons of bison meat and 1,500 tons of poultry meat would be duty-free for the US.
A day after South Korea and the United States released a joint fact sheet on a trade deal, the US and Switzerland announced a framework trade agreement on Friday.
Under the trade agreement, the US slashed its tariffs on imported Swiss products from 39 per cent to 15 per cent. Apart from this, an agreement on Swiss companies to invest $200 billion in the US by the end of 2028 was also signed.
In a statement, the White house said that the US and Switzerland would conclude negotiations to finalize their trade deal by the first quarter of 2026.
As per the US Trade Representative, Jamieson Greer, this agreement would tear down trade barriers and open new markets for American goods. Apart from this, Greer also welcomed Swiss investment in the pharmaceuticals and other key sectors, which would generate thousands of jobs across the US.
Swiss Investment in US:
By 2026, the US expects that around $67 billion of the $200 billion of Swiss investments would arrive. This investment includes $50 billion investment from drugmaker Roche, $23 billion from Novartis and other pledges from engineering group ABB, and opens new tab railway equipment maker Stadler.
Apart from pharmaceuticals, the Swiss investments target medical devices, aerospace and gold manufacturing.
What Did Switzerland Say?
Aftr the framework of the trade deal was announced, Swiss Economy Minister Guy Parmelin said that that the economy will the tariff level down from 39 per cent to 15 per cent, and also put Switzerland at par with the European Union.
He added that the Federal Council is doing everything to reduce costs for their businesses.
Switzerland's State Secretariat for Economic Affairs director Helene Budliger Artieda said the agreement lower tariffs is most likely to come into effect once the US customs processing systems are adjusted.
What Is There in The Agreement?
In an official statement, the Swiss government said that the tariff agreement will reduce Swiss import duties on US industrial products, fish and seafood and agricultural products.
According to the deal, the US would impose only a 15 per cent tariff ceiling for Swiss pharmaceutical producers and semiconductors.
Apart from this, Switzerland would grant the US duty-free bilateral tariff quotas on 500 tons of beef. Also, 1,000 tons of bison meat and 1,500 tons of poultry meat would be duty-free for the US.
Switzerland had agreed to remove a range of tariffs across agricultural and industrial sectors including certain fresh and dried nuts, fruits, seafood and chemicals.
And lastly, Switzerland will recognize US motor vehicle safety standards, which accoring to Donald Trump had been a cause for European countries not buying American-made cars and trucks.
Earlier on Friday, the Swiss industry had reported a 14 per cent fall in exports to the US during the three months through September.
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