Franklin FTSE Switzerland ETF

FLSW

Market cap $60.3M

In exchange, Swiss officials committed to series of quotas for imports from the US on a duty-free basis

After months of punishing trade tensions, the US and Switzerland announced a breakthrough deal on Friday that will slash tariffs to 15% from the brutal 39% rate imposed in August. The agreement marks a stunning reversal for the Swiss economy, which saw exports to America collapse by 14% in the three months to September.

The U.S. and Switzerland have reached a trade agreement that will lower tariffs on Swiss goods to 15%, American and Swiss officials announced on Friday, after President Donald Trump's levies disrupted trade in Switzerland's luxury exports.

Switzerland has been subject to one of the highest tariff rates levied on an individual country by the Trump administration.

The 39% duty was met with dismay, with business leaders saying it was damaging business. Switzerland's key exports include watches, jewelry, machinery, chocolate, and pharmaceutical products.

Georges Kern, CEO of Swiss luxury watchmaker, Breitling discusses the impact of U.S. tariff rate of 39%, and explains how consumer sentiment is being affected by political instability across Europe.

Swiss watchmaker Swatch has begun selling a special edition watch with the numbers three and nine reversed on its face in a play on the 39% tariffs President Donald Trump imposed on U.S. imports from Switzerland last month.

Goods shipped from the country face a 39% tariff in the U.S., which companies warn will have dire consequences if President Trump cannot be quickly dissuaded.

Switzerland's president is about to leave Washington without reaching a deal to get President Donald Trump to lower the 39% tariff he put on the country. A delegation led by Karin Keller-Sutter presented a new proposal to US officials, but no agreement was reached, according to people familiar with the situation.

Switzerland is facing 39% tariffs on goods imported to the U.S. from Aug. 7. The looming duties have caused concerns about the Swiss economy, industry and interest rate outlook.