SWITZERLAND: Gov't Confirms Lower 15% US Tariffs Retroactively From 14 Nov
The gov't has now formally confirmed that the lowering of tariffs on Swiss exports to the US from 39% to 15% will be in effect retroactively from 14 November. Reuters reported the same information on 9 Dec, which came from a statement on the gov't website. The statement was swiftly removed, and a gov't spox said they could not comment on the information.
- Statement: "The existing exemptions from US additional tariffs – including pharmaceuticals, certain chemicals, gold and coffee – remain in force unchanged. In addition, based on the joint statement, the US is to lift the general additional tariff on further Swiss export products, including aircraft, certain aviation-related parts, rubber products, cosmetics and generic drugs."
- Statement: "For ongoing Section 232 investigations concerning pharmaceuticals and semiconductors, it was agreed in the joint statement that any additional sectoral tariffs imposed on Switzerland will not exceed 15%. In return, Switzerland will reduce tariffs for the USA on fish, seafood and certain agricultural products..."
- Federal Councillor Guy Parmelin, in charge of the economy ministry, said in a presser that "Switzerland has made no concessions to reduce tariffs retroactively".
- Reuters: "Swiss companies have welcomed the tariff reduction, which puts them on a level playing field with EU competitors. Many businesses have held back on sending goods while they waited for lower tariffs to come into force."
- Bloomberg News: "As the trade deal between the two countries is a preliminary agreement, the lower rate that’s taking effect still hinges on the outcome of Swiss-US talks to finalize the details."
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US: Senate Convenes To Work On Funding Package, Focus On Time Agreement
The US Senate has convened to begin consideration of the three-bill minibus appropriations package and Continuing Resolution to fund the government through January 30. The primary focus for markets is whether Senate Majority Leader John Thune (R-SD) and Senate Minority Leader Chuck Schumer (D-NY) can strike a deal to fast-track the process of reopening the government.
- As eight Democrats voted to invoke cloture on the package yesterday, the remaining procedural votes can be passed via a simple majority. However, absent a time agreement to wrap up the package today, any single Senator can delay the process for a few days.
- Senator Rand Paul (R-KY) is one potential holdup. He "has been warning GOP leaders that he will obstruct passage of any bill that takes aim at the hemp industry in his state," per Politico.
- House Speaker Mike Johnson (R-LA) indicated at a press conference a short time ago that he will bring the lower chamber back into session 36 hours after Senate passage, which suggests the government could be reopened by Wednesday.
- Punchbowl notes that Johnson wants to pass the Senate package under a rule, meaning the bill will require a vote in the Rules Committee and a rule vote on the floor. The GOP majority will only be two votes if Johnson swears in Rep-elect Adelita Grijalva, who won a special election in September, when the House gavels in.
- As always, Johnson will need the support of conservatives. However, despite standard objections to CRs and the inclusion of a Senate minibus appropriations package, House conservatives are unlikely to torpedo a Trump-backed plan to reopen the government.
FED: US TSY 13W AUCTION: NON-COMP BIDS $1.943 BLN FROM $86.000 BLN TOTAL
- US TSY 13W AUCTION: NON-COMP BIDS $1.943 BLN FROM $86.000 BLN TOTAL
FED: US TSY 26W AUCTION: NON-COMP BIDS $1.378 BLN FROM $77.000 BLN TOTAL
- US TSY 26W AUCTION: NON-COMP BIDS $1.378 BLN FROM $77.000 BLN TOTAL
