FLSW Overview

Trade Deal Announcement: President Trump announced a framework for a trade deal with Switzerland and Liechtenstein, aiming to eliminate a $38.5 billion goods trade deficit by 2028 and secure at least $200 billion in U.S. investments.

Investment Commitments: Major Swiss companies, including Roche and Novartis, have pledged significant investments, expected to create jobs across various sectors in all 50 states.

Tariff Structure: The deal includes a reciprocal tariff rate capped at 15% and plans to remove tariffs on certain goods, while Switzerland will impose quotas on U.S. exports of specific agricultural products.

Digital Trade and Supply Chain: The framework includes provisions for export controls, sanctions, and digital trade principles, with Switzerland committed to balancing bilateral trade with the U.S. by early 2026.

Tariff Negotiations: Switzerland is close to finalizing a deal with the U.S. to reduce export tariffs from 39% to 15%, aligning with the European Union's rates.

Recent Diplomatic Efforts: The discussions follow a positive meeting between President Trump and Swiss business leaders, although the agreement is not yet finalized and could still fall through.

Chinese Equities Performance: Chinese equities are currently the most overbought globally, showing an increase of 19.9% from their 200-day moving average in U.S. dollar terms.

Research Source: This information is derived from a global research note by BofA Securities.