US lowers tariffs to 15% on Swiss goods; Switzerland to invest $200 billion

During the tariff turmoil earlier this year, Switzerland was one of the affected countries. The developed nation was hit with tariffs of 39% by President Donald Trump. It impacted several industries that were very reliant on the exports between the two countries. After shuttle diplomacy, the two have signed a trade deal, and reports are suggesting a great reduction in tariffs.

Previous tariffs

The United States had slapped Switzerland with 39 per cent tariffs earlier this year, the highest on a developed country. Now, as a result of shuttle diplomacy, the talks have led to an agreement between the two countries.

Trade agreement

Under the signed agreement, the tariffs slapped on Swiss products will decrease from 39% to 15%. In addition, it will benefit the United States, as Switzerland has agreed to invest $200 billion in the US under the presidency of Donald Trump. This is expected to put the industries of pharmaceuticals, gold smelting and meat exports at a great advantage in the United States.

U.S. Trade Representative Jamieson Greer told CNBC’s “Squawk Box” on Friday morning, “They’re going to send a lot of manufacturing here to the United States — pharmaceuticals, gold smelting, railway equipment — so we’re really excited about that deal and what it means for American manufacturing.”

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