Switzerland wins US tariff reduction to 15 per cent
The United States and Switzerland announced a framework trade agreement that includes the United States reducing tariffs on imported Swiss products from 39 percent to 15 percent and a commitment by Swiss companies to invest billions of dollars in the United States by the end of 2028.
In the statement made by the White House, it was stated that the USA and Switzerland aim to complete negotiations with Liechtenstein to finalize the trade agreement by the first quarter of 2026.
U.S. Trade Representative Jamieson Greer said the deal eliminates long-standing trade barriers and opens new markets for U.S. goods.
He welcomed the “massive Swiss investment that will help reduce our deficit in pharmaceuticals and other key industries” that will create thousands of jobs across the United States.
The White House said at least US$67 billion of the US$200 billion ($307 billion) in Swiss investment committed in the US would arrive in 2026.
It was stated that they will target sectors such as pharmaceuticals, medical devices, aviation and gold production.
“This agreement puts Switzerland on an equal footing with the European Union and reduces the tariff level from 39 percent to 15 percent,” Swiss Economy Minister Guy Parmelin said while announcing the agreement, which affects approximately 40 percent of Switzerland’s exports.
“Of course, we would prefer $200 billion to be invested in Switzerland,” Parmelin added.
“That’s why the Federal Council is doing everything in parallel to see how we can reduce the costs of our businesses.”
Once U.S. customs processing systems can be adjusted, the lower tariff rate will likely be activated within “days to weeks,” said Helene Budliger Artieda, director of the Swiss State Secretariat for Economic Affairs.
He added that most of Switzerland’s investments in U.S. manufacturing would come from the pharmaceutical and life sciences sectors, but declined to provide details.
Pharmaceuticals are by far the largest export sector from Switzerland to the United States.
The agreement guarantees a 15 percent tariff cap for Swiss drugmakers including Roche and Novartis, avoiding U.S. President Donald Trump’s upcoming Section 232 national security mandates on the industry; this rate can reach 100 percent for some patented drugs.
Parmelin said the 15 percent cap would also apply to other future Part 232 mandates, including semiconductors, and would put it on the same footing as the EU.
“The risk of much higher sector-specific tariffs is therefore ignored,” Parmelin added.
In the statement made by the Swiss government, it was stated that the tariff agreement, which also includes neighboring Liechtenstein, will reduce Switzerland’s import duties on US industrial products, fish and seafood and agricultural products that “Switzerland considers not sensitive”.
Switzerland will give the United States a duty-free dual tariff quota on 500 tonnes of beef, 1000 tonnes of bison meat and 1500 tonnes of poultry meat, the government said.
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