Switzerland and the US have agreed to cut President Donald Trump’s steep 39% tariffs on Swiss exports to 15%, as part of a deal that involves a Swiss promise to invest $200bn (£150bn) in the US.

“It’s a great relief for our economy,” said Swiss Economics Minister Guy Parmelin, who said significant damage had been done since the additional tariffs had kicked in last August.

Parmelin said a move by Swiss business leaders to meet Trump in the White House last week had proved “decisive” in reaching a deal.

Industry chiefs visited the Oval Office, bearing gifts including a Rolex gold watch and a specially engraved gold bar from Swiss-based gold refining company MKS.

Initial attempts by Swiss President Karin Keller Sutter to change Trump’s mind had fallen on deaf ears. Trump said she “was a nice woman, but she did not want to listen”.

But after the 4 November encounter with Swiss business leaders, Trump revealed this week a deal was being worked on.

US Trade Representative Jamieson Greer confirmed an agreement had been reached, saying “President Trump’s unmatched dealmaking continues to deliver for the American people”.

The deal had involved very hard work, said chief trade negotiator Helene Budliger Artieda. Guy Parmelin said it would bring Switzerland into line with the 15% tariff rate negotiated with the US by its European Union neighbours.

The economics minister said it involved the Swiss economy investing $200bn directly in the US by 2028. A third of that Swiss money will be invested in the US in 2026 under the deal.

Switzerland has also agreed to axe tariffs on a quota of US meat exports including beef, bison and poultry.

Greer said the deal “tears down longstanding trade barriers” and Swiss investment would bring thousands of new jobs.

For Swiss industry, the deal could not come soon enough. Tech exports to the US are down 14.2% on the third quarter of last year, according to latest statistics – a dramatic fall since the tariff hike was imposed in August.

The role of Swiss industrialists appears to have been key, and some particularly those trading in luxury goods, gold, or commodities, already had contacts in Trump’s circle.

In September, Trump appeared at the US Open tennis final in the Rolex VIP box hosted by the Swiss watch company’s chief executive Jean Frédéric Dufour.

The president even asked if the Rolex CEO would have been there if Trump had not slapped such steep tariffs on Switzerland.

Last week Dufour met Trump again, this time in the Oval Office, along with fellow business leaders including Johann Rupert from luxury goods maker Richemont and Marwan Shakarchi from MKS.

Days after the meeting, Trump was pictured in the Oval Office with what looked very much like a Rolex “Datejust” desk clock, produced by the company as a collector’s item, and worth tens of thousands of dollars.

A White House official has confirmed to the BBC the two items were given to Trump.

It is quite normal nowadays for visitors to the Oval Office to come bearing a gift.

UK Prime Minister Sir Keir Starmer brought an invitation from King Charles for a lavish state visit. German Chancellor Friedrich Merz offered a framed copy of the birth certificate of Trump’s German grandfather.

The US president receives thousands of gifts every year and they then become US property, deposited with the National Archives and filed annually by the state department.

They are eventually transferred to a presidential library. Some gifts can be kept but presidents have to pay federal taxes if they do not come from a close relative.

Swiss industry has been waiting for a deal with bated breath and a number of Swiss companies had warned they would have to furlough staff if nothing changed.

Yves Bugmann, who heads the Swiss Watch Industry Federation, welcomed the deal after months of uncertainty.

Asked what kind of investment the Swiss government might make in the US that would add up to $200bn, Helene Budliger Artieda said there was a detailed list that included pharmaceuticals, but she singled out plans for plane manufacturer Pilatus to build a big US plant and train-maker Stadler to expand its US operations in Utah.

Gold refining is also part of the plan.

“Currently, Switzerland is the primary location for gold storage, and New York is the primary location for trading,” said trade negotiator.

The chief trade negotiator said it would take a few days or even weeks for the changes to come into effect.

The agreement will only become binding when it receives approval from the Swiss parliament, and then it will be put to a referendum.