Federal Council informed Customs deal in place - but now "diligence, diligence, diligence" awaits

After months of fierce tensions in the customs dispute, Switzerland and the USA have surprisingly achieved a breakthrough. With a new 15 percent tariff rate, billions in investment commitments and far-reaching concessions from the business community.

The months-long customs dispute between Switzerland and the USA has officially reached a turning point. US trade delegate Jamieson Greer had already told CNBC at midday that both sides had reached an agreement. "We've reached a deal," he said, announcing further details for later in the afternoon. Since the summer, the US had imposed tariffs of 39 percent on various Swiss products - a measure that US President Donald Trump had announced in April with his "tariff board" to great media effect.

The Federal Council also confirmed the agreement in the early evening. Switzerland publicly thanked President Trump for his "constructive engagement" and emphasized that the talks with trade delegates in Washington had been "productive" in recent days. The government made it clear that the new tariff rate would be 15 percent - the rate that already applies to EU goods.

At a media conference arranged at short notice, Economics Minister Guy Parmelin and State Secretary Helene Budliger Artieda explained the key points of the agreement. Parmelin spoke of a "breakthrough" that had been achieved after months of intensive work. A central element of the deal is an investment pledge by Swiss companies amounting to 200 billion dollars, spread across several sectors. These include parts of the pharmaceutical industry, the gold smelting sector and manufacturers of railroad equipment.

Budliger Artieda described how there was "a clear interest" in the industry to realign parts of production geographically. This also applies to gold processing: Switzerland is traditionally the most important location for storage, while New York is the global trading center. It is noticeable that certain players are increasingly looking to move their storage structures to the USA.

When asked why pharmaceutical products and gold of all things remain exempt from customs duties, Budliger Artieda said that the USA had probably recognized that not every product could be manufactured domestically without problems. These goods were therefore never subject to customs duties.

At the same time, Switzerland announced that it would reduce its own import duties on US products. All industrial products as well as fish and seafood are affected. In addition, Switzerland is granting the USA new duty-free quotas: 500 tons of beef, 1000 tons of bison meat and 1500 tons of poultry meat per year. The date of implementation will be coordinated with the USA so that the tariff reductions can come into force at the same time.

Despite the breakthrough, uncertainties remain. According to Parmelin, the agreement is not yet legally binding. Should the Supreme Court retroactively classify the tariffs imposed by Trump as illegal, the duties would fall to zero percent. However, if the agreement were already binding, such a decision could trigger global customs chaos - with consequences that are difficult to predict today.

Budliger Artieda also emphasized that Switzerland had not made any commitment to actively reduce its trade deficit with the USA. Instead, representatives of the private sector had been involved in the talks in order to explore ways of expanding US imports. At the same time, fewer goods - particularly from the pharmaceutical industry - would be delivered from Switzerland to the USA in future.

When asked whether Switzerland would buy Boeing aircraft, Budliger Artieda answered clearly: the Swiss Confederation would not place any such orders. Purchase intentions mentioned in the US media come from private companies. She left open whether this refers to Swiss.

Swiss companies relocate parts of their production

A mishap at the SVP caused a stir at midday. The party had published a media release early on in which it congratulated Parmelin on his success and announced that the 15 percent tariff was already final. The text was deleted shortly afterwards. Several versions had been prepared and the wrong one was published by mistake, a spokeswoman explained.

Parmelin and Budliger Artieda also explained what happens next. As a first step, the result must be discussed within the Federal Council, in Parliament and - if necessary - before the people. Only then can the next legal and technical steps towards a binding treaty be initiated.

It is also still unclear how quickly the new tariff rate can be implemented operationally. However, Parmelin emphasized that the aim is to move forward "as quickly as possible". Switzerland is following the path without relinquishing its sovereignty. "Realpolitik means finding solutions," he said - and referred to the intensive work behind the scenes: "Diligence, diligence, diligence. Always stay on the ball."

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17.27 hrs

Press conference is over

17.27 hrs

What happens if the Supreme Court declares Trump's tariffs illegal?

According to Economics Minister Parmelin, the agreement is not yet legally binding. In the event of such a decision, it is expected that the tariffs will fall to zero percent. However, if the agreement were legally binding, this would result in global customs chaos, the effects of which cannot yet be assessed.

5.17 p.m.

What happens now?

According to Budliger Artiega, the next step is to discuss the outcome of the negotiations with the Federal Council, Parliament and the people. Only then can the next steps be finalized.

5.13 p.m.

Exceptional speed

Wouldn't the 200 billion be better invested in Switzerland, a journalist wants to know? You have to look at how Switzerland compares with other countries, says Parmelin. The Federal Council is also monitoring the situation closely.

Budliger Artiega, on the other hand, emphasizes that Switzerland has always been an investor abroad from a historical perspective. What is unusual, however, is the amount - and how quickly the money is expected from the USA.

5.10 p.m.

"Diligence, diligence, diligence"

For Budliger Artieda, the recipe for success that ultimately led to the breakthrough in the customs dispute can be put down to a simple formula: "Diligence, diligence, diligence. Always stay on the ball."

17.08 hrs

How does Switzerland intend to reduce the trade deficit?

A journalist wants to know what Switzerland has promised the USA in terms of reducing the trade deficit. "The Swiss Confederation has not promised anything in this respect," says Budliger Artieda. That is why representatives from the private sector were also involved in the negotiations.

"Fewer goods are being sent from Switzerland to the USA - primarily from the pharmaceutical industry," says Budliger Artieda. In addition, possibilities were sought to increase US imports into Switzerland.

5.03 pm

Why is the Federal Council thanking Trump?

"It was the Trump administration that got things moving again," explains Parmelin. The journalist's question goes back to the Federal Council's X contribution, in which US President Donald Trump is expressly thanked for his commitment.

According to Parmelin, realpolitik must now be pursued, "it is important that solutions have now been found". And so it was only logical to be grateful to the US President for the negotiations.

16.57 hrs

Has Switzerland promised to buy Boeing aircraft?

"The Swiss Confederation will not be buying any aircraft," says Budliger Artieda. The purchase intentions mentioned in the US media are from private companies. Budliger Artieda leaves open whether this refers to Swiss.

4.52 p.m.

Gold remelting included in the 200 billion

Gold remelting is also included in the investment promise, confirms Budliger Artieda in response to a corresponding question. There is interest from Swiss gold producers to produce in the USA. "Today, Switzerland is the primary location for gold storage and New York is the primary location for trading." However, there is a noticeable interest in the industry to increasingly move gold storage to the USA.

4.47 p.m.

Why are pharmaceutical products and gold excluded from the tariffs?

"The USA has probably also realized that not all products can be manufactured in the USA," says Budliger Artieda. Pharmaceutical products, gold products and other selected products would therefore never have paid customs duties.

4.45 p.m.

How long will it take for the new tariff rate to apply?

The official part of the media conference is over. Journalists now have the opportunity to ask questions. When asked about the technical implementation, Parmelin says it will take a while. "But we want to see the new customs rate implemented as quickly as possible," says Parmelin.

4.42 p.m.

Switzerland lowers import duties for US products

Switzerland will also reduce import duties on a range of US products at the same time as lowering US tariffs. These include all industrial products, fish and seafood - "non-sensitive US agricultural products from Switzerland's point of view", said Parmelin.

"Under the agreement, Switzerland grants the USA duty-free bilateral tariff quotas on selected US export products: 500 tons for beef, 1000 tons for bison meat and 1500 tons for poultry meat. The date of implementation of these market access concessions will be coordinated with the USA to ensure a simultaneous reduction in tariffs," reads a statement from the Swiss government.

4.38 p.m.

Declaration of intent to become a contract

According to Parmelin, the new tariff rate still does not apply to all goods. Pharmaceutical products, chemical products and gold are still exempt.

The deal is a binding declaration of intent that "grants Switzerland access to the US market". The task now is to turn it into a valid contract that is approved by the Swiss parliament. In the event of a referendum, the people would also be involved.

4.31 p.m.

Swiss companies must invest 200 billion

Economics Minister Guy Parmelin and Helene Budliger Artieda, State Secretary at Seco, now provide information on the customs deal. "Yesterday I had to put you off, but now I can announce it: We have a deal," said Parmelin. The deal includes an investment pledge from Swiss companies worth 200 billion dollars.

Parmelin emphasized that Swiss sovereignty had not been surrendered in any way.

Press conference postponed to 4.30 p.m.

Federal Councillor Guy Parmelin will give a live briefing on the customs deal with the USA at 4.30 p.m. blue News will ticker live.

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