Trump accused of caving to big business after deal to cut Swiss tariffs to 15% | Trump tariffs

Donald Trump has agreed to reduce US tariffs on Switzerland from 39% to 15% as part of a new trade deal, cutting taxes that strain economic ties and negatively impact Swiss exporters.

The Swiss government announced that after bilateral meetings in Washington and intense lobbying efforts by Swiss companies, the two countries signed a “non-binding memorandum of understanding”.

Critics seized on the announcement as evidence that the White House is putting corporate interests ahead of the interests of struggling Americans as inflation continues to raise the cost of living across the country.

Massachusetts Democrat Senator Elizabeth Warren said, “While prices for American families are rising due to Trump’s chaotic tariffs, billionaires and giant corporations who are close to Trump are relieved.”

Leading Swiss executives met with Trump at the White House earlier this month. Swiss luxury watchmaker Rolex also invited its president and a number of officials to the US Open tennis final in September.

Rolex CEO Jean-Frédéric Dufour later explained that upon arrival, Trump “jokingly asked if he would be invited if there were no tariffs.” He added that it was “a moment that caused laughter all around”.

Dufour denied that Rolex had “any negotiations” with the United States over tariffs. The White House dismissed Warren’s criticism as “stupid conspiracy theories.”

Trump was A gold table clock was given as a gift from RolexHe was later seen at his desk in the Oval Office. Another company is said to have donated a gold bar with engravings on it.

US trade representative Jamieson Greer also confirmed the breakthrough on Friday, telling financial news network CNBC that both sides had “essentially reached an agreement.”

According to the statement made by the Swiss government, the Trump administration agreed to limit the customs duties imposed by the United States on Switzerland and Liechtenstein to “a maximum of 15 percent” within the scope of the agreement.

This would bring U.S. tariffs on Switzerland to the same level as those in the European Union, allowing Swiss exporters to be treated the same as their competitors in neighboring countries.

In return, Switzerland would reduce tariffs on “a range of US products,” the statement said. “In addition to all industrial products, fish and seafood, this also includes agricultural products from the United States, which Switzerland considers non-sensitive.”

Swiss officials have also committed to a set of quotas for US goods that can be exported duty-free to Switzerland, including 500 tonnes of beef, 1,000 tonnes of bison meat and 1,500 tonnes of poultry.

“The implementation date of these market access privileges will be coordinated with the United States to ensure that customs duties are also reduced,” the statement said.

This is the latest “framework” trade deal signed by Trump and his administration. Unlike formal free trade agreements, which are significant and can take years to negotiate, these agreements often have a narrow focus and are light on detail.

The exact timing of the implementation and when the new tariffs and quotas will be implemented have not yet been determined.

“They’re going to send a lot of manufacturing products to the United States; pharmaceuticals, gold smelting, railroad equipment,” Greer said on CNBC. “So we’re really excited about this deal and what it means for American manufacturing.”

The Swiss government said companies in the country “plan to make direct investments” worth $200 billion in the United States “by the end of 2028.”