It feels like every month we talk about the US-Swiss tariff situation but across November it feels like there has at last been a swing towards the positive. In the week of November 5th President Trump met with representatives from the Swiss watchmaking industry that included Rolex CEO Jean-Frédéric Dufour, Richemont Chairman Johann Rupert, and Alfred Gantner the co-founder of Partners Group who own Breitling and Universal Genève. Now the result of those talks has been revealed.
That initial meeting was followed by a series of talks between US Trade Representative Jamie Greer and Swiss economy minister Guy Parmelin. While diplomatic talks are interesting to many, the watch world’s focus was pulled away by a separate mystery. After the first meeting between the Swiss contingent and Trump, photos of the Oval Office following the meeting showed a new, but as yet unidentified clock on the desk. Rolex have since acknowledged the gift in a letter. The clock is shaped in the style of a Datejust with fluted bezel.
It has now been confirmed that the trade negotiations have been successful with the Swiss tariffs set to be reduced to 15% in line with the average for Europe. The Swiss federal government shared the following details:
Under the declaration of intent, at the same time as the reduction in US tariffs, Switzerland will reduce import duties on a range of US products. In addition to all industrial products, fish and seafood, this includes agricultural products from the US that Switzerland considers non-sensitive.
For other US export interests, a solution was agreed that takes Switzerland’s agricultural policy interests into account: under the agreement, Switzerland will grant the US duty-free bilateral tariff quotas on selected US export products: 500 tonnes for beef, 1,000 tonnes for bison meat and 1,500 tonnes for poultry meat. The date for implementing these market access concessions will be coordinated with the US to ensure that customs duties are reduced at the same time.
Furthermore, Swiss companies are planning to make direct investments in the USA amounting to $200 billion by the end of 2028. This should also include efforts to strengthen vocational education and training.
The announcement of the reduction in additional US tariffs on Swiss imports will serve to stabilise bilateral trade relations. Although overall tariffs remain higher than before the additional tariffs were introduced in April, the agreed reduction in additional tariffs is expected to have a positive impact on the Swiss economy.
Image credit: The White House
