Everything about the big customs deal What Trump gets - and what Switzerland sacrifices in return
After months of tension in the trade dispute, Switzerland and the USA have agreed on a new tariff framework. The punitive tariffs of 39 percent are to be dropped and a rate of 15 percent will apply instead - combined with far-reaching concessions from the Swiss economy.
No time? blue News summarizes for you
- After lengthy negotiations, Switzerland and the USA have agreed on a new tariff rate of 15 percent.
- The deal includes a relocation of production by Swiss companies to the USA as well as a large investment package.
- It remains unclear exactly which sectors will be affected in future and how quickly Swiss companies will be relieved.
The conflict smouldered for three months, during which Swiss companies paid steep punitive tariffs of 39% on certain US imports. It is now clear that the diplomatic pressure, the talks behind the scenes and the direct line to Washington have had an effect. Switzerland and the USA have agreed on a new tariff framework.
blue News will keep you updated on what you need to know.
What has happened?
Switzerland and the USA have agreed to reduce the previous punitive tariff of 39 percent on Swiss products to 15 percent. This value corresponds to the tariff level that the USA already applies to the EU. This is a political agreement in principle that has yet to be translated into a formally binding agreement.
How high is the new tariff rate?
The new tariff rate is 15 percent. This eliminates the punitive tariff of 39 percent imposed by the USA.
Why is the deal happening now?
According to US trade delegate Jamieson Greer, intensive talks have been underway since April. After President Donald Trump announced the tariffs in a media-effective manner with his "tariff slate", the pressure on the Swiss export industry became great.
The recent visit to Washington by Economics Minister Parmelin and meetings between Swiss business representatives and Trump have apparently brought movement to the negotiations.
What is the content of the deal?
According to the points known so far, the deal includes a reduction in US tariffs to 15 percent. In return, according to Greer, Swiss companies would relocate certain parts of their production capacities to the USA.
According to the Federal Council, Switzerland must invest around 200 billion dollars in the USA in return. According to as yet unconfirmed reports, additional Boeing aircraft are also to be procured - the US company is currently suffering from a sales crisis.
The tariff level for Switzerland will therefore be the same as for the EU in future.
What conditions did Swiss companies have to fulfill?
A central element of the agreement is an investment pledge by Swiss companies amounting to 200 billion dollars. These funds are to be used in the USA, including in the pharmaceutical industry, gold smelters and railroad equipment manufacturers.
Parts of production are to be relocated. From the USA's perspective, this commitment was an "important component" of the deal.
What does this mean for Swiss sovereignty?
Parmelin emphasizes that "no sovereignty has been surrendered". Nevertheless, this is a highly sensitive investment commitment by the private sector that still needs to be widely discussed politically.
State Secretary Helene Budliger Artieda points out that Switzerland has historically always been an investor abroad - the only new aspect is the size and speed of the expected commitment.
Was there political turbulence in Switzerland?
Yes - because of the SVP.
The party published a media release at midday in which it congratulated Federal Councillor Guy Parmelin on the "success" and announced that the 15 percent tariff was fixed.
A short time later, the SVP retracted the announcement. A spokeswoman told watson that it had been a mistake: Different versions of the text had been prepared and the one with the final duty rate had gone online by mistake.
Which products are still exempt from US tariffs?
Pharmaceutical products, chemical goods and gold are still not affected. According to Budliger Artieda, this is because the USA itself relies on importing certain goods from Switzerland. "Not everything can be produced in the USA," she said.
What will change for US products exported to Switzerland?
Switzerland is reducing its own import duties in parallel with the US tariff reduction. It will now be possible to import all industrial products as well as fish and seafood more cheaply. Switzerland is also granting the USA additional duty-free quotas: 500 tons of beef, 1000 tons of bison meat and 1500 tons of poultry meat. Implementation is being coordinated with the USA in order to start at the same time.
Why is the Federal Council publicly thanking Donald Trump?
One journalist question focused on the fact that the Federal Council had explicitly thanked Trump on X. Parmelin justified this by saying that the Trump administration had "got things moving" and that realpolitik now had to be pursued. If difficult negotiations are successful, gratitude is "logical".
What happens if the US Supreme Court rules the tariffs illegal?
According to Parmelin, the agreement is not yet legally binding. If, contrary to expectations, the Supreme Court decides that the previous Trump tariffs were illegal, Switzerland expects the tariffs to fall to zero percent. If, on the other hand, the agreement were already fixed, such a decision could trigger global customs chaos - with consequences that are currently almost incalculable.