Trump's Tariff Turnaround: US-Swiss Trade Relations Shift

U.S. President Donald Trump announced a reduction of tariffs on Swiss imports from 39% to 15% following Swiss business pressures. Despite the reduction, Trump hinted future increases were possible. A preliminary agreement includes Swiss investments of $200 billion in the U.S., with finalization expected by 2026.

In a significant development, U.S. President Donald Trump announced that the tariff rate on imports from Switzerland will drop from 39% to 15%, citing pressures from prominent Swiss companies, including Rolex. While the reduction is welcomed by Swiss businesses, Trump warned that the tariffs could rise again.

Trump justified the original higher tariffs, arguing that many nations, such as Switzerland, had benefited from low tariffs and suggested a strict stance during a prior meeting with former Swiss President Karin Keller-Sutter. Their dialogue notably contributed to the initial increase to 39% from a planned 30%.

A preliminary understanding reached in November outlines a massive commitment from Swiss industries, promising $200 billion in U.S. investments by 2028. Both countries aim to conclude the formal agreement negotiations by early 2026.

(With inputs from agencies.)