The US will reduce duties for Switzerland from 39% to 15% in exchange for $200 billion in investments

The United States and Switzerland have reached an agreement that will reduce duties on Swiss goods from 39% to 15%. The agreement was the result of negotiations between Swiss Minister of Economy Guy Parmelein and U.S. Trade Representative Jemison Greer. Switzerland, in turn, pledged to invest $200 billion in the United States. The agreement is important for both countries, as the reduction of duties will improve economic relations and simplify trade.

Source Reuters

The talks followed a visit by a delegation of Swiss businessmen to the White House, where they discussed the tariffs directly with President Trump. Richemont CEO Johann Rupert noted that the high tariffs were the result of a misunderstanding between the two countries. As a result of the 39% duty, exports from Switzerland to the US fell by 14% in the third quarter, which negatively affected the market, in particular machine tool manufacturers.

The reduction of tariffs to 15% is aimed at stabilizing the Swiss economy and preventing job losses. Approval of the agreement may indicate the resumption of economic partnership between the countries and the resumption of job creation in both economies.