From 39% to 15%: How Swiss Diplomacy and Gifts Crafted a Major Trade Breakthrough with the US

In a landmark agreement, Switzerland and the United States have successfully negotiated a substantial reduction in tariffs on Swiss imports from 39% to 15%, thanks to a strategic ‘golden charm offensive’. The deal comes after significant damage to the Swiss economy was reported due to the previous tariffs, which had been in effect since August. Swiss Economics Minister Guy Parmelin emphasized the relief this deal brings amid a backdrop of declining Swiss exports to the US, which dropped by 14.2% compared to the previous year.

The negotiation was positively influenced by a recent meeting between Swiss business leaders and President Donald Trump, where industry chiefs presented high-profile gifts like a Rolex gold watch and a bespoke gold bar. This meeting appeared to be pivotal, transforming earlier diplomatic attempts—led by Swiss President Karin Keller Sutter, who initially failed to sway Trump.

US Trade Representative Jamieson Greer highlighted the deal as a victory for American interests as well, stating that it would dismantle longstanding trade barriers and result in thousands of new jobs. As part of the agreement, Switzerland will also remove tariffs on a quota of US meat exports, including beef, bison, and poultry.

However, the road to this deal was fraught with challenges. Chief trade negotiator Helene Budliger Artieda noted the arduous work required to come to terms, with the investment commitment reaching a staggering $200 billion by 2028, a third of which will occur by 2026. This investment is expected to support various industries, from pharmaceuticals to manufacturing, including plans for the plane manufacturer Pilatus to establish a major plant in the US.

The agreement awaits approval from the Swiss parliament and will ultimately be subject to a referendum. Depending on the outcomes in the coming weeks, this agreement could reshape trade relations significantly between these two nations, showcasing how diplomacy intertwined with business interests can yield beneficial results.