US and Switzerland working on a deal to cut tariffs by 39%

The 39% tariff has been met with dismay, and business leaders have said it is hurting trade.

Switzerland's major exports include watches, jewelry, machinery, chocolate, and pharmaceutical products.

Shares of Swiss companies Swatch Group and Richemont rose at market opening on Tuesday.

The United States and Switzerland are moving closer to signing a trade deal that will reduce the 39% tariff imposed on the country by President Donald Trump in August.

The president confirmed on Monday that White House officials are "working on an agreement to reduce the tariffs slightly."

He told reporters in the Oval Office, "I haven't finalized a number, but we're going to do something to help Switzerland."

He added, "We've had a very bad impact on Switzerland. But we want Switzerland to succeed." He said Switzerland has been a "very good partner."

According to various media reports citing sources familiar with the negotiations, tariffs on Swiss exports could be reduced to 15%, equivalent to the tariffs imposed by the European Union on exports to the US. Bloomberg reported that the agreement could be finalized within weeks.

A spokesperson for Switzerland's Ministry of Economy told CNBC, "We are not commenting on ongoing negotiations." He added that Swiss Economy Minister Guy Parmelin is "in regular contact with the relevant authorities in the US, including USTR Jamieson Greer."

CNBC has contacted the White House for further comment and is awaiting a response.

The tariffs have raised concerns in Switzerland, where major exports include watches, jewelry, machinery, chocolate, electronics, and chemical and pharmaceutical products. Shares of Swiss companies Swatch Group and Richemont rose when the market opened on Tuesday.

High-profile Swiss companies have openly expressed their views on the damage caused by the tariffs, with the CEO of Swiss luxury watchmaker Breitling telling CNBC that the tariffs are "terrible" for Switzerland.

The 39% tariff was one of the highest imposed by Trump in his series of global tariffs this year, as the president was angered by the trade imbalance with Switzerland and several other countries.

According to the Office of the United States Trade Representative, the US had a goods trade deficit with Switzerland last year of $38.5 billion. According to a CNBC translation, the Swiss government said the trade relationship between the two is "relatively balanced."

"The US has a surplus in services exports and Switzerland has a surplus in goods exports," the government said in August. It also said its goods surplus is not based on unfair trade practices and that more than 99% of US goods can be imported into Switzerland without tariffs.