Switzerland Wins Tariff Rate Cut to 15%, Pledges $200 Billion in U.S. Investments
The United States and Switzerland unveiled a landmark trade framework on Friday that will slash tariffs on Swiss imports from 39% to 15%, while Switzerland committed to investing $200 billion into the U.S. economy by the end of 2028.
The announcement, made jointly with tiny Liechtenstein, marks a significant shift in U.S.-Swiss trade relations and puts Switzerland on equal footing with the European Union, which secured a similar 15% tariff rate earlier this year. Officials say the full trade agreement is expected to be finalized by the first quarter of 2026.
U.S. Trade Representative Jamieson Greer said the deal eliminates longstanding barriers and unlocks new opportunities for American exporters. “We welcome massive Swiss investment to help reduce our deficit in pharmaceuticals and other key sectors,” Greer said, promising the agreement will generate thousands of American jobs.
Of the $200 billion in investments pledged by Swiss companies, at least $67 billion is expected to come as soon as 2026, according to the White House. Major commitments already include $50 billion from pharmaceutical giant Roche and $23 billion from Novartis. Other contributors include engineering firm ABB and railway manufacturer Stadler.
Switzerland’s investment will largely focus on pharmaceutical production—the country’s top export to the U.S.—as well as medical devices, aerospace, and gold manufacturing. The deal also guarantees a 15% tariff ceiling for Swiss pharma companies, insulating them from the steep Section 232 national security tariffs President Trump plans to impose on some patented drugs, which could reach up to 100%.
Swiss Economy Minister Guy Parmelin hailed the deal as a game-changer, noting it affects roughly 40% of Swiss exports. “This agreement puts Switzerland on an equal footing with the European Union,” he said, adding that the tariff relief would go into effect “within days or weeks” once U.S. customs systems are updated.
In addition to tariff reductions on Swiss goods, the agreement grants the U.S. access to key Swiss markets. Switzerland will offer duty-free quotas on 500 tons of beef, 1,000 tons of bison meat, and 1,500 tons of poultry. It will also drop tariffs on various American goods deemed “non-sensitive,” including nuts, dried fruit, seafood, and chemicals.
Switzerland will also begin recognizing U.S. motor vehicle safety standards—a longstanding grievance for President Trump, who has accused European nations of blocking American-made cars.
For Swiss industries, the deal provides immediate relief from the crushing 39% tariffs imposed in April under Trump’s reciprocal trade strategy. Industrial sectors, particularly machine tools and precision instruments, saw sharp declines in U.S. exports in recent months—Swissmem reported a 14% drop in exports to the U.S. through September, with machine tool shipments down 43%.
“With this agreement, we finally have the same conditions as our EU competitors in the American market,” said Nicola Tettamanti, president of Swissmechanic, an association representing small and mid-sized manufacturers.
The Swiss economic research group KOF said the lower tariff rate could boost 2026 economic growth to over 1%, up from its current forecast of 0.9%. Economist Nadia Gharbi of Pictet Bank said the deal removes major downside risks and restores Switzerland’s competitive edge.
The White House emphasized that the trade deal strengthens economic ties while also bolstering national security by deepening supply chain cooperation and pharmaceutical investment. Greer noted that the framework is in line with President Trump’s goal of making trade “reciprocal, fair, and America First.”
The agreement adds to a growing list of Trump administration trade wins across the Western Hemisphere and Europe aimed at cutting costs for U.S. consumers and rebalancing decades of unfavorable trade imbalances.