US Commerce Secretary Optimistic About Trade Deals with Switzerland and Taiwan
US Commerce Secretary Howard Lutnick has expressed confidence in securing a customs deal with Switzerland, despite ongoing trade disputes and tariffs. He also hinted at a potential trade agreement with Taiwan. These developments come as the US continues to navigate complex international trade relationships.
Swiss Trade Negotiations
Switzerland is currently facing 39% tariffs on goods exported to the US. According to Lutnick, "We will probably get a deal with Switzerland." He also added, "Switzerland will find its way over time," suggesting ongoing progress. His initial optimism contrasts with remarks made a week prior when he expressed less confidence after a meeting with Swiss Economics Minister Guy Parmelin.
Parmelin traveled to the US last week to meet with Lutnick, Treasury Secretary Scott Bessent, and Trade Representative Jamieson Greer. These talks were part of the second round of negotiations in the customs dispute. Prior to the meeting, Swiss Foreign Minister Ignazio Cassis indicated that Switzerland had prepared an “optimized offer” to the US.
Impact of US Tariffs on Switzerland
The US tariff policy has significantly impacted Switzerland. The 39% rate is considerably higher than the 15% imposed on the EU. US President Donald Trump imposed these tariffs on numerous Swiss products in August. Previous attempts by Swiss President Karin Keller-Sutter and Parmelin to resolve the issue in Washington were unsuccessful.
Potential Trade Deal with Taiwan
In a separate development, Lutnick suggested that the United States and Taiwan are close to reaching a trade agreement. "We've got a big deal coming with Taiwan," Lutnick said in a CNBC interview. The Taiwanese Office of Trade Negotiations confirmed that trade talks with the US were progressing and they are awaiting a conclusion meeting pending arrangements by the American side.
Taiwan hopes to reduce the recently enacted import tax imposed on most Taiwanese goods entering the US. Negotiations were triggered after President Trump announced a 32 percent tariff on Taiwanese imports in April, later reduced to 20 percent. Taiwan is also seeking "preferential treatment" for its semiconductor and ICT products.
US Section 232 Investigation
The US Department of Commerce has launched a Section 232 investigation into the semiconductor and other industries. This investigation, under the Trade Expansion Act, could result in tariffs or other restrictions on foreign products entering the US, including those from Taiwan.
