The United States will reduce tariffs on Swiss goods to 15%, down from the previous rate of 39%, under a new trade framework that also includes a pledge from Swiss companies to invest $200 billion in the U.S. by the end of 2028, the Swiss government announced on Friday.
Swiss Economy Minister Guy Parmelin said the new tariff rate aligns Swiss exports with those from the European Union. He added that the reduction will ease pressure on around 40% of Switzerland’s total exports. U.S. Trade Representative Jamieson Greer confirmed that Washington has “essentially reached a deal with Switzerland,” with full details to be released later in the day.
According to the Swiss government, the agreement—also covering Liechtenstein—will lower Swiss import duties on American industrial goods, fish, seafood, and certain agricultural products classified as “non-sensitive.” Switzerland will also grant duty-free tariff quotas to the United States on 500 tons of beef, 1,000 tons of bison meat, and 1,500 tons of poultry.
Greer told CNBC that the deal will lead Swiss firms to move more manufacturing operations to the United States. He highlighted pharmaceuticals, gold smelting, and railway equipment as key industries expected to expand U.S. production capacity.
Level Playing Field With the EU
Swiss industrial groups welcomed the agreement, saying it brings them in line with competitors from the European Union, whose exports already benefit from a 15% tariff rate in the U.S. Nicola Tettamanti, president of Swissmechanic, said the lower rate gives Swiss manufacturers the same market conditions as their European rivals for the first time since August 1.
Hans Gersbach of the KOF Swiss Economic Institute said the move is a significant relief for Swiss exporters, although other economic risks remain. He noted that machinery, precision instruments, watchmaking, and food industries stand to benefit the most. KOF forecasts Swiss economic growth of 0.9% in 2026, but Gersbach said the new tariff rate could push growth above 1%.
Nadia Gharbi, an economist at Pictet, said the tariff cut removes one of the biggest downside risks for Switzerland’s economy. She added that Switzerland had lost competitiveness under the previous regime, partly due to the strong Swiss franc and partly because neighboring EU economies enjoyed lower tariffs of around 15%.
Despite the positive outlook, Swiss industry data released on Friday showed that exports to the United States fell 14% in the three months through September, according to Swissmem. Machine tool makers saw exports slump by 43% during the same period.
