Switzerland said on Friday that it had reached an agreement with the United States to lower a punishing 39 percent tariff on Swiss goods to 15 percent, a change that will help to lower the price of exporting pharmaceuticals, gold, watches and chocolate to the United States.
U.S. officials confirmed on Friday that the countries had reached an agreement and said that further details would be announced later in the day. The lower tariff comes after a meeting between U.S. and Swiss government officials on Thursday and an unusual visit by a group of high-level Swiss executives to President Trump in the Oval Office last week.
The Trump administration put a 39 percent tariff on Swiss exports in August, blindsiding a longtime ally and delivering a sharp blow to Switzerland’s economy. The tariff significantly raised the cost of the country’s exports of drugs, dairy, gold and watches to the United States. The tariff was among some of the highest rates set for any country, which administration officials said was in response to a substantial trade deficit the United States had with Switzerland.
Jamieson Greer, the U.S. trade representative, said in an interview on CNBC Friday morning that the United States had “essentially reached a deal with Switzerland” that would involve the Swiss locating new manufacturing in the United States, including for pharmaceuticals, railway equipment and gold smelting.
“Their companies are going to build here,” Mr. Greer said, adding that the agreement would eliminate some of the sources of the Swiss trade surplus with United States. “We’ve already seen Roche has actually broken ground already for a pharmaceutical facility in the United States.”
On Thursday, the Trump administration announced four new trade deals with Argentina, Guatemala, El Salvador and Ecuador, as it also prepared to announce new tariff exemptions aimed at lowering high prices that have frustrated U.S. consumers.
“Thanks to President Trump for the constructive engagement,” the Swiss government said on social media.
Liz Alderman is The Times’s chief European business correspondent, writing about economic, social and policy developments around Europe.
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