US, Switzerland Reach Landmark Trade Deal, Tariffs Slashed by 24%

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The United States and Switzerland have reached a significant trade agreement, which will see tariffs imposed by the US on Swiss goods slashed by nearly a quarter. The deal, announced on Friday, comes after a day of talks in Washington between US and Swiss officials, including Swiss Economy Minister Guy Parmelin. As part of the agreement, the US has agreed to lower tariffs on Swiss goods from 39% to 15%. The new rate will serve as a ceiling for products previously subject to lower tariffs, while goods already facing tariffs above 15% will not be affected. The deal marks a major victory for the Swiss economy, which had been struggling under the weight of high tariffs imposed by the Trump administration. The country's export-heavy sectors, including watchmaking, industrial machinery, and chocolate, had been particularly hard hit. Under the agreement, Swiss companies have committed to investing $200 billion in the US by the end of 2028. This includes plans to strengthen vocational education and training, as well as investments in key sectors such as pharmaceuticals and semiconductors. While the deal brings some relief, Swiss businesses remain cautious, warning that new tariffs could still be introduced in the future. The Swiss Watch Industry has welcomed the tariff reduction, which it says will help to alleviate the uncertainty faced by the sector. The agreement is seen as a significant breakthrough in US-Swiss trade relations and is expected to pave the way for further cooperation between the two countries. The full pact is expected to be concluded by the first quarter of 2026.