U.S. to cut duties on Swiss goods to 15% in exchange for buying Boeing planes

The U.S. and Switzerland have "effectively" reached a trade agreement to reduce duties on Swiss goods from 39% to 15%, U.S. Trade Representative Jameson Greer said, Bloomberg writes. In exchange, Switzerland pledged to invest $200 billion in the U.S. during Donald Trump's presidential term, including $70 billion next year, targeting industries such as pharmaceuticals and gold refining, Greer noted. Switzerland has also agreed to increase purchases of Boeing airplanes, he added.

The forthcoming agreement will be a welcome relief for Switzerland, which received the highest level of duties from the Donald Trump administration among all developed countries, the agency explains. Due to the introduction of 39 percent duties in August (twice the level applied to the EU), Switzerland's key industries were under pressure: watchmaking, mechanical engineering and precision instruments. Greer noted that Switzerland "will move a significant part of production to the U.S. - pharmaceuticals, gold refining, railroad equipment."

The Trump administration attributed the imposition of high duties to a reaction to the $40 billion trade disruption between the U.S. and Switzerland.

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