Switzerland Nears US Tariff Deal That Could Cut Duties to 15%
Switzerland is reportedly close to securing a trade agreement with the United States that would lower US tariffs on Swiss goods from 39% to 15%, according to a Swiss source who spoke with Reuters. The deal could be finalized as early as Thursday or Friday, though approval from President Donald Trump is still required before it becomes official.
In late July, Trump announced that Swiss exports to the US would face a steep 39% tariff, one of the highest duties in his global trade realignment. The move threatened Switzerland’s access to key American markets for precision machinery, luxury watches, and chocolate, as it made Swiss products less competitive compared to rivals from regions with lower import tariffs.
Constructive Talks Signal Possible Breakthrough
Negotiations have been led by Switzerland’s Economic Affairs Ministry, which has remained tight-lipped about the ongoing talks. Economy Minister Guy Parmelin has been in close contact with US Trade Representative Jamieson Greer, and both officials held a “very constructive” video call on Friday.
Trump confirmed on Monday that the US was working on a new deal to reduce tariffs on Swiss goods, saying, “We’re going to be working on something to help Switzerland.” Swiss officials have reportedly offered investment incentives and economic proposals to help reduce the US trade deficit, paving the way for a possible agreement.
Among the Swiss proposals are plans to boost defense spending on US equipment, increase access for American energy firms to the Swiss market, and expand gold refining capacity in the US. Major companies such as Roche and Novartis have also pledged to invest billions of dollars in the United States as part of a joint government–business initiative.
Last week, several Swiss business leaders — including executives from MSC, Rolex, Partners Group, Mercuria, Richemont, and MKS — met with President Trump at the White House. During the meeting, they presented him with a gold bar and a Rolex watch, in a gesture symbolizing renewed trade cooperation.
Market Reaction: Swiss Luxury Stocks Rally
News of the potential tariff reduction sent Swiss luxury stocks higher, with Richemont and Swatch Group both rising in Tuesday’s trading session. The United States remains the largest market for Swiss watches, accounting for nearly 19% of total exports, according to the Swiss Watch Industry Federation.
Industry representatives welcomed the potential tariff cut. Jean-Philippe Kohl, vice director of Swissmem, said that a reduction to 15% would restore a “level playing field” for Swiss manufacturers competing with Germany, Austria, Italy, and Japan. Meanwhile, Werner Salzmann, a Swiss lawmaker, called the move “very positive,” though he noted that “0% would be even better.”
