Switzerland wins tariff rate cut to 15 per cent in US trade deal

The United States and Switzerland announced a framework trade agreement on Friday that includes Washington slashing its tariffs on imported Swiss products to 15% from 39% and a pledge by Swiss companies to invest $200 billion in the US by the end of 2028.

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The United States and Switzerland, joined by Liechtenstein, aim to conclude negotiations to finalise their trade deal by the first quarter of 2026, the White House said in a statement.

US Trade Representative Jamieson Greer said the agreement tears down longstanding trade barriers and opens new markets for American goods. He welcomed “massive Swiss investment to help reduce our deficit in pharmaceuticals and other key sectors” that will generate thousands of jobs across the US.

At least $67 billion of the $200 billion in pledged Swiss investments in the United States will come in 2026, the White House said. They will target sectors including pharmaceuticals, medical devices, aerospace and gold manufacturing, it said.

“This agreement puts Switzerland on an equal footing with the European Union and brings the tariff level down from 39% to 15%,” Swiss Economy Minister Guy Parmelin said in announcing the deal, which affects about 40% of Switzerland's exports.

“Of course, we would prefer (the $200 billion) to be invested in Switzerland,” Parmelin added. “And that’s why the Federal Council in parallel is doing everything to see how we can reduce costs for our businesses.”