American tariffs on Swiss exports, imposed by Donald Trump, will fall from 39% to 15% after a flying visit to Washington by Guy Parmelin, Switzerland’s economy minister, repprted RTS. The Federal Council announced on Friday that Bern and Washington had reached a non-legally binding declaration of intent. The deal does not fully restore the pre-tariff status quo, said Parmelin, but represents a significant improvement.
Parmelin insisted that Switzerland had made no concessions affecting its neutrality or room for manoeuvre. Even so, Switzerland has pledged that Swiss firms will invest $200bn in the United States by the end of 2028. These are private commitments, the government stressed, and include the trade in gold as well as investments in training and education.
Pharmaceutical firms, unsurprisingly, account for the bulk of the promised outlays. Pilatus, a maker of aircraft, is building a large factory in America, and Stadler Rail already operates in Utah. Bern will not publish the full list of commitments, arguing that doing so could move share prices.
Further concessions
Switzerland has also agreed to improve recognition of American standards in certain sectors, notably the automotive industry, and will lower its own tariffs in parallel with the United States on a range of American goods. These include fish, seafood and selected agricultural products deemed non-sensitive. The concessions, Parmelin said, pose no threat to Swiss farmers. Switzerland will grant duty-free bilateral tariff quotas for 500 tonnes of beef, 1,000 tonnes of bison and 1,500 tonnes of poultry.
Implementation will take time. The agreement is currently non-binding. The Federal Council will prepare a negotiation mandate and submit it for consultation; parliament must then approve it. A referendum could follow. Only once these steps are completed will the accord become binding.
For now, Bern’s priority is to give breathing space to parts of Swiss industry, Parmelin said. What unlocked the deal, he added, was a recent visit by Swiss business leaders to the Oval Office. Their message—that the tariffs were turning into a lose-lose for investment on both sides—helped revive contact with Jamieson Greer, the American trade representative, and gave negotiations fresh momentum.
For Parmelin, the deal is a timely success as he approaches his second year in the rotating presidency. He managed to conclude the crucial talks with Jamieson Greer, the American trade representative. Personal chemistry appears to have helped. Relations between Karin Keller-Sutter, Switzerland’s president last year, and Donald Trump were reportedly frosty. Mr Greer, by contrast, is said to have got on well with Parmelin. A Paris-educated Francophile, he was apparently pleased to conduct parts of the negotiation in French, noted Andy Müller, a parliamentary correspondent for Swiss television.
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