Switzerland may be close to securing a 15% tariff on its exports to the US, in what would be a relief for the country after it was hit with a punishing 39% levy in August, according to people familiar with the matter, reported Bloomberg.
A deal may be concluded within weeks, said the people, who declined to be identified discussing ongoing negotiations. They also warned that nothing is finalized and the talks could still come undone, as happened during discussions between US and Swiss trade negotiators in late July.
A spokesperson for the Swiss government declined to comment. The White House also declined to comment. The Office of the US Trade Representative didn’t immediately respond.
The previous negotiations ended with Switzerland being hit with the highest tariff rate the US imposed on any developed nation. Since then, the country has been trying to secure better terms, an effort that gained momentum last week when a group of Swiss billionaires and corporate executives met Donald Trump at the Oval Office.
The meeting went so well that Trump subsequently ordered Trade Representative Jamieson Greer to step up direct negotiations, which he did with Swiss counterparts on Friday
A deal would mark the successful culmination of weeks of shuttle diplomacy to Washington by Switzerland’s top trade diplomat, Helene Budliger Artieda, combined with the Swiss corporate charm offensive. A 15% rate would match the tariff on the European Union and be a vast improvement on the 39% that Trump announced on Aug. 1, Switzerland’s national holiday.
The initial punitive tariff has been linked to Trump’s view of a perceived trade imbalance between the two countries, specifically a near $40 billion US goods deficit. Switzerland had tried to counter that this was offset by imports of services.
What made the Aug. 1 announcement worse was that senior Swiss officials believed they had successfully negotiated a better deal with their US counterparts, which only needed sign-off from Trump.
There are signs the current high tariffs are hurting the economy. Unemployment has risen and GDP may have shrunk in the third quarter – results are due on 17 November, but many economists expect slight shrinkage.
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Bloomberg article (in English)
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