The United States has agreed to reduce tariffs on Swiss imports from 39% to 15% under a new framework trade agreement that will also see Swiss companies invest US$200bn in the U.S. by the end of 2028. The deal, confirmed on Friday by U.S. Trade Representative Jamieson Greer and the Swiss government, aligns the tariff rate with the level applied to goods from the European Union.
The Swiss government said further details will be released at 4 p.m. local time, noting that the reduction is expected to stabilise bilateral trade relations after months of disruption. Swiss officials have warned that the higher tariff regime, introduced in August after talks in Washington failed to produce a compromise, had weighed heavily on exporters and contributed to a weaker economic outlook for 2026.
Under the agreement, Switzerland will lower duties on a range of U.S. industrial and agricultural products and grant duty-free quotas for 500 tonnes of beef, 1,000 tonnes of bison and 1,500 tonnes of poultry. The U.S., in turn, will cap tariffs at 15% for Switzerland and Liechtenstein on all affected goods, including pharmaceuticals and other sectors potentially subject to future Section 232 national security duties. Greer said the deal had been in the works since April and would bring “a lot of manufacturing” to the U.S., including pharmaceuticals, gold smelting and railway equipment.
Swiss companies are planning to invest US$200bn directly in the United States by 2028, according to Bern. A portion of that is expected to come from large manufacturers, including Roche, which earlier this year pledged US$50bn in U.S. investment. Swiss officials said the largest contributions would come from life sciences, aircraft manufacturing and rail equipment, with the potential for new facilities and expansions in several U.S. states.
The tariff deal followed extensive lobbying by Swiss industry leaders, including meetings with President Donald Trump at the White House earlier this month. Swiss Economics Minister Guy Parmelin said the agreement would relieve around 40% of the country’s total exports and bring Switzerland back onto a level playing field with EU competitors. Swiss exporters of machinery, precision instruments, watches and food products are expected to see the most immediate benefit.
The Swiss franc strengthened 0.4% against the U.S. dollar after the announcement. Swiss economic forecasters said the tariff reduction removes a major downside risk to growth, while industry data shows exports to the U.S. fell sharply — including a 14% year-on-year drop in technology shipments and a 43% decline in machine-tool exports during the September quarter.
