US To Lower Tariffs On Switzerland To 15% From 39%, Says Swiss Minister

President Donald Trump-led administration is planning to reduce the US’ tariffs on goods from Switzerland, Swiss Economy Minister Guy Parmelin announced on Friday.

During the meeting between US Trade Representative

Jamieson Greer, it was decided that the US’s tariff rate on Swiss imports will fall to 15% from 39%, which is one of the highest levies the United States charges for any country’s goods. Most goods imported from Switzerland by the US includes wristwatches, unsmelted gold and medical equipment.

According to CNN, though gold had been excluded from the tariffs, wristwatches and medical equipment, as well as other Swiss exports, could get cheaper for Americans to buy.

Greer said: “They’re going to send a lot of manufacturing here to United States — pharmaceuticals, gold smelting, railway equipment.” More details on the agreement are yet to be released.

At a press conference, Parmelin said that the tariff reduction would provide relief for about 40% of Switzerland’s total exports.

Reuters quoted the Swiss government as saying that the deal, which includes Liechtenstein, will reduce Swiss import duties on US industrial products, fish and seafood and agricultural products “that Switzerland considers non-sensitive.”

According to a US Commerce Department data, the country had a $38 billion trade deficit with Switzerland last year. Greer pointed out that the agreement seeks to lower the trade deficit.

Previous to Trump’s second term, goods from Switzerland were usually charged a tariff of between 0% to 2.5%.

Following the announcement, Swiss industrial groups have welcomed the deal.

“For the industrial sector, which was subject to a 39% tariff since August 1, this is good news. For the first time, we have the same conditions in the US market as our European competitors,” said Nicola Tettamanti, president of Swissmechanic, which represents small and medium-sized manufacturers.