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 stated that a recent visit by Swiss business leaders to the White House last week was pivotal in sealing the agreement.
Industry chiefs visited the Oval Office, presenting gifts such as a Rolex gold watch and a specially engraved gold bar from a Swiss gold refining company.
Initial efforts by Swiss President Karin Keller Sutter to sway Trump's opinion were unsuccessful, as he remarked, she was a nice woman, but she did not want to listen. However, after the meeting with business leaders, a deal began to take shape.
US Trade Representative Jamieson Greer confirmed the agreement, emphasizing that it would benefit both countries by tearing down longstanding trade barriers and creating thousands of new jobs.
The deal not only lowers Swiss tariffs but also requires Switzerland to remove tariffs on a quota of US meat exports, proving essential for reviving vital trade links.
For the Swiss industry, which has faced a dramatic drop of 14.2% in tech exports to the US, the agreement was critical, as a continued impasse would have forced companies to lay off staff. Major Swiss companies had been under pressure to negotiate an agreement to avert economic fallout.
This investment will fold in various sectors, including pharmaceuticals and manufacturing, with plans for Swiss companies like Pilatus and Stadler to build significant facilities in the US.
The deal is expected to become binding after receiving approval from the Swiss parliament, and it will also be subject to a referendum.
