Switzerland may reach an agreement with the United States to reduce US tariffs on Swiss products to 15% as early as Thursday or Friday, a Swiss source told Reuters news agency on Tuesday.
The source added that the deal could also be finalised early next week, but underscored that it would not be confirmed until US President Donald Trump gave his approval.
At the end of July, Trump announced that Swiss exports to the US would face a 39% tariff starting 7th August, one of the steepest duties imposed under his global trade overhaul.
The tariff hike jeopardised Switzerland’s access to one of its key markets for precision machinery, watches, and chocolate, as it would make Swiss goods costlier than those from regions facing lower import duties.
Economy Minister Guy Parmelin has been in frequent contact with US officials, including Trade Representative Jamieson Greer, the government said.
The two held a video conference on Friday, during which Parmelin characterised the discussions as “very constructive.”
On Monday, Trump stated that he was in the process of negotiating a deal to reduce tariffs on Swiss goods.
“I haven't set any number, but we're going to be working on something to help Switzerland,” Trump said.
Swiss officials have presented a package of investment commitments and proposals designed to help narrow the US trade deficit, a move that has contributed to progress toward a potential agreement, the source said.
Bern has already proposed boosting purchases of US defence equipment and granting American energy companies broader access to the Swiss market.
Switzerland has also proposed increasing gold refining capacity in the United States as part of efforts to help narrow the US trade deficit with Switzerland, according to sources familiar with the discussions.
In addition, Swiss pharmaceutical giants Roche and Novartis have announced plans to invest billions of Dollars in the US, as part of a coordinated initiative between the Swiss government and the private sector.
According to Swiss media, a delegation of Swiss business leaders met with Trump at the White House last week to discuss the effects of the tariffs.
The meeting, which included executives from MSC, Rolex, Partners Group, Mercuria, Richemont, and MKS, reportedly helped ease tensions and improve relations with Washington.
“Tariffs at 15% are still very high, but a reduction from 39% would be clearly welcomed,” stated Jean-Philippe Kohl, vice director of Swissmem, an industry association. “It would put Swiss companies on a level playing field with rivals from Germany, Austria, Italy and Japan who have the same 15% level.”
Whereas Werner Salzmann, a lawmaker in the Swiss upper house of parliament, commented: “A reduction in the US tariffs to 15% would be very positive for Swiss industry, although of course 0% would be better.”