The US and Switzerland have nearly finalised a trade deal to reduce tariffs on Swiss goods from 39% to 15%. The White House plans to announce the details on Friday, according to US Trade Representative Jamieson Greer.
“We’ve essentially reached a deal with Switzerland,” Greer said during a CNBC interview. “So we’ll post details of that today on the White House website.”
The Swiss government announced the deal in a post on X, thanking President Donald Trump for his “constructive engagement.” Swiss leaders started a press conference late Friday afternoon in Bern’s capital to discuss the agreement.
What benefits is Switzerland expected to get?
The proposed deal is expected to bring some relief to Switzerland, which faced the highest levy imposed by the Trump administration on any developed country. Greer informed reporters that the 15% tax covers most-favoured-nation rates along with some other existing duties, mirroring agreements with the European Union, Bloomberg reported.
The publication earlier reported on Monday that Switzerland and the US are nearing an agreement on a 15% tariff rate.
After securing a tariff comparable to that of the EU, Swiss exporters will reach parity with their rivals in the trading bloc. However, this does not provide them an edge over European competitors, who do not face a strong franc, which earlier today hit a decade-high against the euro.
Details of the deal
Switzerland has agreed to invest $200 billion in the US during Trump’s presidency, with $70 billion planned for next year, focusing on sectors like pharmaceuticals and gold smelting, according to Greer. Additionally, Switzerland has pledged to purchase more Boeing commercial aircraft, Greer noted.
Meanwhile, Roche Holding AG and Novartis AG have committed to investing over $70 billion in manufacturing and R&D in the US over the coming years, although the source of the remaining funds remains uncertain. Similar to gold and semiconductors, pharmaceutical products are currently exempt from tariffs.
The companies are working closely with the White House to develop strategies for lowering drug prices and avoiding future duties, based on recent agreements with Pfizer Inc., AstraZeneca Plc, and other companies.
Swiss Economy Minister Guy Parmelin stated to reporters on Friday afternoon that the country “has not made any concessions that could threaten its neutrality or independence.”
Under the agreement, Switzerland will provide the US with duty-free bilateral tariff quotas for 500 tonnes of beef, 1,000 tonnes of bison meat, and 1,500 tonnes of poultry meat. This represents a rare easing of its agricultural trade restrictions. However, due to the influence of the Swiss farmers’ lobby, this move is likely to spark political controversy.
The agreement concludes months of talks between Swiss government officials and business leaders, following the imposition of US tariffs on the country’s main industries, including watches, machinery, and precision instruments.
Swiss watchmakers, machinery, and precision instrument producers, as well as food and chemicals exporters, have been most affected by the 39% tariff, the report said, citing Switzerland’s central bank. However, other significant exports such as medicines and gold were not subject to this rate under various US tariff rules.
The proposed deal ends a months-long dispute that started in August, when Trump surprised Bern by imposing a 39% tariff on Swiss exports—more than twice the rate applied to the EU. The Trump administration justified this move as a response to a reported $40 billion goods trade deficit, catching Swiss officials off guard, as they thought they had already reached an agreement with their US counterparts.
(With inputs from Bloomberg.)