【By Observer Net, Yuan Jiaqi】
As the U.S. Supreme Court is reviewing President Trump's comprehensive tariff policy, media reports indicate that the White House is accelerating negotiations with trade partners on tariffs. This week, Swiss Federal Councilor and Minister of Economic Affairs, Education and Research, Pammel, led a delegation to the United States to meet with U.S. Trade Representative Jamison Greer, seeking to reduce U.S. tariffs to 15%.
Since August 7 this year, the U.S. has imposed an additional 39% import tariff on Swiss goods, which was the highest rate for Western allies and shocked Switzerland. Before Trump's second term, the tariff on Swiss exports to the U.S. generally ranged from 0% to 2.5%. The Swiss government previously stated that the new tariff has placed significant pressure on Switzerland's export-oriented economy, with nearly 60% of its exports to the U.S. affected.
On Friday (14th) local time, after the latest round of negotiations, Greer told CNBC, "Switzerland may be the next (country to reach an agreement)."
Soon after, the Swiss government announced on the same day that it had reached a trade agreement framework with the U.S., under which the tariff on Swiss products would be reduced to 15%, and the agreement covers Liechtenstein, a neighboring country. While this move can lower the cost of exporting Swiss products such as medicines, gold, watches, and chocolates to the U.S., the cost is heavy: following Japan and South Korea, Switzerland has also been "extorted" into investing $200 billion in the U.S.
According to reports by Reuters and The New York Times, Pammel said upon announcing the agreement, "This trade agreement puts Switzerland on par with the EU, and the 15% tariff rate will affect about 40% of Swiss exports."
According to details disclosed by both sides, as part of the core of the agreement, Swiss companies have committed to investing approximately $200 billion in the U.S. before the end of Trump's presidential term in 2028.
Pammel admitted, "Of course, we would prefer these $200 billion to be invested in Switzerland itself, so the federal council is also working simultaneously to study how to further reduce the operating costs of domestic enterprises."
In an interview with CNBC, Greer said that as part of the agreement, Switzerland will build manufacturing facilities in the U.S. in sectors such as pharmaceuticals, gold smelting, and railway equipment, and he expressed great enthusiasm for the agreement and its significance for American manufacturing.
Greer specifically mentioned Swiss pharmaceutical giant Roche, which had already separately committed to investing $50 billion in the U.S. earlier this year. He added that Switzerland also pledged to purchase more Boeing aircraft.
The White House clarified in a fact sheet that at least $670 billion of the $2 billion investment would be implemented by 2026, and Swiss companies will also establish apprenticeship programs and training plans in the U.S. Meanwhile, Switzerland has committed to balancing its trade relationship with the U.S. Additionally, both sides plan to complete the negotiations by the first quarter of 2026 and formally finalize the trade agreement.
Switzerland officially announced
Helena Buederig-Artid, Director of the Swiss State Secretariat for Economic Affairs, told Reuters that once the U.S. customs processing system completes technical adjustments, the new tariff rate could take effect within "a few days to a few weeks."
She also revealed that most of the Swiss investment in the U.S. would come from the pharmaceutical and life sciences sectors, but did not provide specific company information. In addition, as the largest segment of Swiss exports to the U.S., the 15% tariff cap allows Swiss pharmaceutical companies to avoid the impact of the upcoming Section 232 "national security tariffs" under Trump's policies. This clause could impose tariffs as high as 100% on certain patented drugs, affecting Swiss pharmaceutical companies like Roche and Novartis.
Pammel added that the 15% ceiling covers other sectors affected by the U.S. Section 232, such as semiconductors, allowing Switzerland to enjoy the same treatment as the EU and completely eliminating the risk of higher industry tariffs.
The agreement also involves mutual market access adjustments. The Swiss government stated that it will reduce import tariffs on U.S. industrial products, fish, seafood, and "non-sensitive" agricultural products, and grant the U.S. a bilateral duty-free tariff quota of 500 tons of beef, 1,000 tons of wild beef, and 1,500 tons of poultry meat.
The White House statement also showed that Switzerland has agreed to eliminate tariffs in multiple agricultural and industrial sectors, including certain fresh and dried nuts, fruits, and chemicals; and will recognize U.S. vehicle safety standards. The statement said this move is a response to Trump's complaints about European countries unwilling to buy American cars.
The Wall Street Journal pointed out that the behind-the-scenes influence of the Swiss billionaire group's "charm offensive" played a crucial role in the agreement. Pammel also acknowledged the importance of the involvement of the Swiss business community.
The report said that earlier this month, when government-level negotiations were stuck, top executives from Swiss luxury group Richemont, such as CEO Rupert, and head of commodities trading firm Mercuria, Yegi, visited the White House Oval Office and met with Trump.
During the meeting, these executives not only promised to narrow the trade surplus through investments in the U.S., but also brought gifts such as golden bars engraved with Trump's personal logo and Rolex clocks. The meeting was a great success, and after the meeting, Trump praised it on social media and immediately ordered the resumption of negotiations.
Only a week later, the U.S. tariffs that had troubled Bern officials for half a year were reduced to 15%, matching the EU's tariff level. Therefore, the U.S. media called it "a deal made with gold bars."
Earlier, in September, the president of Rolex was seen alongside Trump in the Rolex VIP lounge watching the U.S. Open men's final. Also present at the match were Trump's son-in-law Kushner and U.S. Treasury Secretary Bassett.
When leaving, Trump also received a gift: a golf sweater and sports vest. Some Secret Service personnel also received Rolex baseball caps.
When responding to questions from U.S. Democratic politicians, Dufour once replied that Trump had jokingly asked whether he would have been invited if it wasn't for the tariff issue.
Dufour claimed that inviting Trump was due to the focus on "sports values," not political compromise. He emphasized that no "substantive" discussions on tariff issues took place during the match.
According to U.S. media reports, Trump's critics quickly seized the opportunity to voice their opinions when the U.S.-Swiss agreement was announced, arguing that this indicates that the White House places corporate interests above the interests of struggling American citizens amid rising national inflation and living costs.
"Trump's chaotic tariff policy has caused household living costs to soar, while billionaires and large corporations who are close to him have gained breathing space," said Massachusetts Democratic Senator Elizabeth Warren.
The Guardian pointed out that the agreement with Switzerland is still another "framework" trade agreement reached by the Trump administration, different from formal free trade agreements that contain detailed content and may take years of negotiations. Currently, the specific implementation time of the agreement, the activation nodes of the new tariffs and quota policies have not been finally determined, and there is still a risk of negotiation breakdown, similar to the situation where the U.S.-Swiss talks ended without results in mid-July.
Attitudes toward the agreement within Switzerland are not unified. A survey conducted by British YouGov among 1,260 Swiss people showed that nearly two-thirds of respondents believed that even facing a high tariff of 39%, Switzerland should not yield to the U.S.
Additionally, although they may face domestic price increases, half of the respondents supported Switzerland relying more on its own products in the future, 41% opposed Swiss companies making major investments in the U.S., and only 15% expressed support.
Regarding the Swiss government's celebration of the agreement with the U.S., some netizens could not help but express disappointment, "You lost your dignity, sovereignty, and independence, yet you celebrate it as a victory. This seems to be the norm now."
This article is an exclusive article by Observer Net. Without permission, it cannot be reprinted.
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