Switzerland wins US tariff rate cut to 15%, pledges $200 billion in US investments

The United States and Switzerland announced a framework trade agreement on Friday (14 November) that includes Washington slashing its tariffs on imported Swiss products to 15% from 39% and a pledge by Swiss companies to invest $200 billion in the US by the end of 2028.

The United States and Switzerland, joined by Liechtenstein, aim to conclude negotiations to finalise their trade deal by the first quarter of 2026, the White House said in a statement.

US Trade Representative Jamieson Greer said the agreement tears down longstanding trade barriers and opens new markets for American goods. He welcomed "massive Swiss investment to help reduce our deficit in pharmaceuticals and other key sectors" that will generate thousands of jobs across the US.

At least $67 billion of the $200 billion in pledged Swiss investments in the United States will come in 2026, the White House said in a statement.

The total includes prior US investment commitments including $50 billion from drugmaker Roche and $23 billion from Novartis along with pledges from engineering group ABB railway equipment maker Stadler.

In addition to pharmaceuticals - Switzerland's largest export to the US - the investments in US production will target medical devices, aerospace and gold manufacturing, the White House said.

"This agreement puts Switzerland on an equal footing with the European Union and brings the tariff level down from 39% to 15%," Swiss Economy Minister Guy Parmelin said in announcing the deal, which affects about 40% of Switzerland's exports.

"Of course, we would prefer (the $200 billion) to be invested in Switzerland," Parmelin added. "And that's why the Federal Council in parallel is doing everything to see how we can reduce costs for our businesses."

The lower tariff rate is likely to be activated within "days, weeks," as soon as the US customs processing systems can be adjusted, said Helene Budliger Artieda, director of Switzerland's State Secretariat for Economic Affairs.

Pharma tariffs capped at 15%

The deal guarantees a 15% tariff ceiling for Swiss pharmaceutical producers, limiting the impact of US President Donald Trump's forthcoming Section 232 national security duties for the sector, which could reach 100% on certain patented drugs.

Parmelin said the 15% cap would also apply to other future Section 232 duties, including semiconductors, putting key sectors on the same footing as the EU.

"The risk of much higher sector-specific tariffs is therefore ruled out," Parmelin added.

A Swiss government statement said the tariff agreement will reduce Swiss import duties on US industrial products, fish and seafood and agricultural products "that Switzerland considers non-sensitive."

Switzerland will grant the US duty-free bilateral tariff quotas on 500 tonnes of beef, 1,000 tonnes of bison meat and 1,500 tonnes of poultry meat, the government said.

The White House statement said Switzerland agreed to remove a range of tariffs across agricultural and industrial sectors including certain fresh and dried nuts, fruits, seafood and chemicals.

The White House also said Switzerland will recognise US motor vehicle safety standards, a step toward addressing Trump's frequent complaint that European countries do not buy American-made cars and trucks.

Level playing field with EU

Swiss industrial groups welcomed the deal, saying it would put them on a level playing field with competitors from the European Union, which agreed to a 15% tariff on EU exports to the US.

"For the industrial sector, which was subject to a 39% tariff since 1 August, this is good news. For the first time, we have the same conditions in the US market as our European competitors," said Nicola Tettamanti, president of Swissmechanic, which represents small and medium-sized manufacturers.

Switzerland's machinery, precision instruments, watchmaking, and food sectors, which export to the US, would see the most relief, said Hans Gersbach, a director of the KOF Swiss Economic Institute at ETH Zurich.

KOF forecasts Swiss economic growth of 0.9% in 2026, but this would exceed 1% with the lower tariff rate, he added.

Switzerland had a $38.3 billion goods trade surplus with the US in 2024, according to US Census Bureau data.

This rose to $55.7 billion in 2025 through July, reflecting primarily the front-loading of US imports from Switzerland during the first quarter, before Trump imposed his "reciprocal" tariffs in early April.

Nadia Gharbi, an economist at Swiss bank Pictet, said the tariff reduction removed the main downside risks for the country's economy and represents a clearly positive development for Swiss industries and for the overall growth outlook.

"Under the previous tariff regime, Switzerland suffered a significant loss of competitiveness — not only because of the strength of the Swiss franc, but also because neighbouring European economies were subject to tariffs of only around 15%," she said.

Swiss industry on Friday reported a 14% fall in exports to the US during the three months through September, technology industry association Swissmem said, while machine tool makers saw shipments slump 43%.