U.S.–Switzerland Trade Deal Finalized, Tariffs Slashed to 15% | WPN World People News

According to a Reuters report on the 14th, the United States and Switzerland announced a trade framework agreement focusing on reducing U.S. tariffs on Swiss imports from 39% to 15%, while Switzerland committed to investing USD 200 billion in the United States by the end of 2028. The White House said in a statement that the goal for the United States, Switzerland, and Liechtenstein is to complete negotiations on the trade agreement in the first quarter of 2026. This would place Switzerland’s tariff rates on par with those of EU member states.

U.S. Trade Representative Jamieson Greer stated that the agreement breaks long-standing trade barriers and opens new markets for American goods. The United States welcomes Switzerland’s large-scale investments, which will help reduce trade deficits in pharmaceuticals and other critical sectors while creating thousands of jobs in the United States.

According to the White House statement, at least USD 67 billion of the pledged USD 200 billion investment will be in place as early as 2026. The USD 200 billion commitment includes USD 50 billion from pharmaceutical company Roche, USD 23 billion from Novartis, and additional investments from engineering group ABB, railway equipment manufacturer Stadler, and others. In addition to pharmaceuticals—Switzerland’s largest export to the United States—the investments will also cover U.S. production in medical devices, aerospace, and gold refining.

Swiss Economy Minister Guy Parmelin said when announcing the agreement that lowering tariffs to 15% would put Switzerland on equal competitive footing with the EU. The agreement affects about 40% of Swiss exports. It will also reduce tariffs on U.S. industrial goods, fish, seafood, and agricultural products deemed "non-sensitive" by Switzerland, while lowering or eliminating tariffs on certain fresh and dried nuts, fruits, seafood, and chemicals. Switzerland will additionally grant tariff-free bilateral quotas of 500 tons of beef, 1,000 tons of bison meat, and 1,500 tons of poultry from the United States. Switzerland will also recognize U.S. vehicle safety standards—an important step toward addressing Washington’s complaint that EU regulatory practices hinder American-made cars. Parmelin added that Switzerland would of course prefer the USD 200 billion in investment to remain domestically, and that the government will make every effort to study how to reduce business costs to offset the impact.

Swiss manufacturing industries welcomed the agreement—particularly machinery manufacturers—saying it places them on a level playing field with EU competitors. The Swiss industry association noted that in the three months through September, Swiss exports to the United States fell by 14%, while shipments by machine-tool makers plunged by 43%. Reuters reported that the tariff deal will provide the greatest relief to Switzerland’s machinery, precision instruments, watchmaking, and food sectors.

The agreement also brings an end to the trade dispute between the two sides that has been ongoing since August. Citing a USD 40 billion trade deficit with Switzerland, the United States had announced a 39% tariff on Swiss goods—the highest rate imposed by the Trump administration on a developed country. Switzerland was taken by surprise by the sudden tariff hike and has engaged in intensive diplomatic negotiations with the United States over the past several months.