Trump Management Forges New Trade Paths with Switzerland, Liechtenstein & Latin America
The Trump administration is actively reshaping global trade dynamics, recently securing a series of agreements aimed at attracting greater foreign investment and addressing longstanding U.S. trade deficits. These deals, announced this week, signal a continued focus on bilateral negotiations and a willingness to leverage economic incentives to achieve favorable outcomes.
A Landmark Deal with switzerland & Liechtenstein
On Friday, the United States finalized a important trade deal with switzerland and Liechtenstein, dramatically lowering tariffs. Previously set at 39% and 37% respectively, tariffs will now be reduced to a uniform 15%. This change, taking effect in the coming weeks, is expected to provide significant relief to Switzerland, which faced some of the highest U.S. duties globally.
Former President Trump previously justified the high tariffs on Switzerland by citing a nearly $40 billion goods trade surplus the nation held with the U.S. in 2024. To address this imbalance, bern has committed to a substantial $200 billion investment in key U.S. industries during the next four years. Specifically, $70 billion of this investment is slated for the coming year, focusing on sectors like pharmaceuticals and gold smelting.
Expanding Trade Frameworks in Latin America
Just one day prior,Washington established similar trade frameworks with four Latin American nations: Argentina,Ecuador,Guatemala,and El Salvador. These agreements maintain existing U.S. tariffs – 10% on Argentina, Guatemala, and el Salvador, and 15% on Ecuador – but introduce exemptions for specific goods.
Notably, the deals will remove U.S. duties on select products like bananas and coffee, benefiting these exporting nations. U.S. imports of Argentine beef, previously subject to a 10% tariff, will also be exempt. Though, the United States is not expected to increase the quota for Argentine beef entering the country.
Political Considerations & Regional Dynamics
The beef exemption underscores the close relationship between president Trump and Argentine President javier Milei. This move follows a $40 billion bailout provided to Argentina by the U.S.,despite opposition from some within the Republican party. This decision highlights the administration’s willingness to prioritize strategic alliances,even amidst domestic political considerations.
These recent trade developments demonstrate a clear strategy to recalibrate U.S. trade relationships.You can expect continued negotiations and adjustments as the administration seeks to secure more favorable terms for American businesses and workers.
For further information, you can read the full report: Trump Secures New Trade Deal Frameworks in Europe and Latin America
This article is part of Foreign Policy’s ongoing coverage of the Trump administration. Follow our comprehensive coverage here: https://foreignpolicy.com/projects/trump-presidential-transition-personnel-cabinet-policy-issues/
