US, Switzerland unveil deal cutting tariffs to 15 percent
Pact adds new US quotas for Swiss beef, bison and poultry
14 November 2025
3 minute read
By: 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, reported Reuters.
The United States and Switzerland, joined by Liechtenstein, aim to conclude negotiations to finalize 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."
The lower tariff rate is likely to be activated within "days, weeks," as soon as the US customs processing systems can be adjusted, said Helene Budliger Artieda, director of Switzerland's State Secretariat for Economic Affairs.
She added that a large portion of Swiss investments in US production would come from the pharmaceuticals and life sciences sectors, but declined to provide specifics. Pharmaceuticals is by far the largest export sector from Switzerland to the US.
Pharma tariffs capped at 15%
The deal guarantees a 15% tariff ceiling for Swiss drugmakers, including Roche and Novartis, from US President Donald Trump's forthcoming Section 232 national security duties for the sector, which could reach 100% for certain patented drugs.
Parmelin said the 15% cap would also apply to other future Section 232 duties, including semiconductors, putting it on the same footing as the EU.
"The risk of much higher sector-specific tariffs is therefore ruled out," Parmelin added.
A Swiss government statement said the tariff agreement, which includes neighboring Liechtenstein, will reduce Swiss import duties on US industrial products, fish and seafood and agricultural products "that Switzerland considers non-sensitive."
Switzerland will grant the US duty-free bilateral tariff quotas on 500 tons of beef, 1,000 tons of bison meat and 1,500 tons of poultry meat, the government said.
Level playing field with EU
Swiss industrial groups welcomed the deal, saying it would put them on a level playing field with competitors from the European Union, which agreed to a 15% tariff on EU exports to the US.
"For the industrial sector, which was subject to a 39% tariff since August 1, this is good news. For the first time, we have the same conditions in the US market as our European competitors," said Nicola Tettamanti, president of Swissmechanic, which represents small and medium-sized manufacturers.
"It's a great relief on tariffs, but additional economic burdens and risks for Switzerland remain," said Hans Gersbach, a director of the KOF Swiss Economic Institute at ETH Zurich.
Switzerland's machinery, precision instruments, watchmaking, and food sectors, which export to the US, would see the most relief, Gersbach said.
KOF forecasts Swiss economic growth of 0.9% in 2026, but this would exceed 1% with the lower tariff rate, he added.
Switzerland had a $38.3 billion goods trade surplus with the US in 2024, according to US Census Bureau data. This rose to $55.7 billion in 2025 through July, reflecting primarily the front-loading of US imports from Switzerland during the first quarter, before Trump imposed his "reciprocal" tariffs in early April.
Nadia Gharbi, an economist at Swiss bank Pictet, said the tariff reduction removed the main downside risks for the country's economy and represents a clearly positive development for Swiss industries and for the overall growth outlook.
"Under the previous tariff regime, Switzerland suffered a significant loss of competitiveness — not only because of the strength of the Swiss franc, but also because neighboring European economies were subject to tariffs of only around 15%," she said.
Swiss industry on Friday reported a 14% fall in exports to the US during the three months through September, technology industry association Swissmem said, while machine tool makers saw shipments slump 43%.
