The United States and Switzerland are in the final stages of negotiations for a trade agreement that would significantly reduce import tariffs imposed by the Trump administration, from 39% to 15%, according to multiple sources cited by the international press.
President Donald Trump confirmed on Monday that White House officials are working on an agreement aimed at mitigating the effects of the tariffs introduced in August on Swiss exports.
"We haven't set a final number yet, but we are working on something to help Switzerland. We've hit Switzerland pretty hard, but we want it to remain a prosperous country. It has been a very good ally," Trump told reporters in the Oval Office.
Sources close to the discussions state that the tariff could be reduced to 15%, the same level applied to the European Union, and the agreement could be finalized in the coming weeks, according to Bloomberg.
A spokesperson for the Swiss Ministry of Economy told CNBC that Minister Guy Parmelin "is in constant contact with relevant American authorities, including USTR representatives," without commenting on details of the negotiations.
The 39% tariff imposed by Trump as part of his campaign to rebalance trade has particularly affected Swiss exports of watches, jewelry, cars, electronics, chocolate, and pharmaceutical products.
Shares of Swatch Group and Richemont companies rose Tuesday morning at the stock market opening, amid optimism about an agreement being close.
The CEO of watchmaker Breitling described the tariff as "disastrous" for the Swiss industry.
The U.S. administration justified the measure by citing the trade imbalance between the two countries. According to the U.S. Trade Representative's Office, the United States had a goods deficit of $38.5 billion in trade with Switzerland last year.
The Swiss government rejected accusations of unfair trade practices, stating that commercial relations are "relatively balanced," as the U.S. has a surplus in service exports, while Switzerland has it in goods exports.
Over 99% of American products can be imported into Switzerland without customs duties, Bern emphasized in August.