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Swiss Economy Contracts as U.S.–Switzerland Tariff Cut Framework Takes Shape

A provisional deal links a 15% U.S. duty to roughly $200 billion in Swiss investment, pending further talks and domestic approval.

Overview

  • Preliminary data show Swiss GDP fell 0.5% in Q3, with officials citing steep U.S. tariffs that curbed exports, particularly in chemicals and pharmaceuticals.
  • The framework announced Friday would reduce the U.S. levy on Swiss goods from 39% to 15% in exchange for major Swiss investment and expanded U.S.-based manufacturing.
  • Economy Minister Guy Parmelin defended the accord as necessary relief and not a capitulation, while industry groups welcomed parity with EU competitors.
  • Opposition figures, including the Greens, criticized the process and concessions, questioning corporate involvement and saying consumers and farmers could bear costs.
  • Key details remain unsettled, including potential acceptance of controversial U.S. meat imports, and analysts warn a strong franc and possible pharma production moves to the U.S. could weigh on growth.