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U.S. and Switzerland Unveil Tariff Framework Cutting Rate to 15% for $200 Billion Investment

The pact remains non-binding pending Swiss parliamentary review, with a possible referendum.

Overview

  • The framework announced Friday would lower U.S. duties on Swiss goods from 39% to 15%, setting parity with European Union rates and covering Liechtenstein.
  • Swiss firms pledged about $200 billion in U.S. investment, with at least $67 billion planned for 2026, and U.S. officials said some manufacturing is expected to shift to American plants.
  • Final terms still require negotiations on scope and timing, and Switzerland signaled easier access for selected U.S. products including dairy, poultry and medical devices.
  • Preliminary data showed Switzerland’s economy contracted 0.5% in the third quarter as exports to the U.S. fell sharply, with watch shipments plunging, including a 55.6% drop in September.
  • Industry groups welcomed the relief, while opposition parties criticized concessions and questioned lobbying efforts and luxury gifts to President Trump; Economy Minister Guy Parmelin defended the agreement.