Published by Global Banking and Finance Review
Posted on November 14, 2025
By John Revill
ZURICH (Reuters) -The United States will slash its tariffs on goods from Switzerland to 15% from a crippling 39% under a new framework trade agreement that includes a pledge by Swiss companies to invest $200 billion into the U.S. by the end of 2028, the Swiss government said on Friday.
The announcement by Swiss Economy Minister Guy Parmelin brings the U.S. tariff rate on Swiss goods in line with those from the European Union. Parmelin told a news conference that the tariff reduction would provide relief for about 40% of Switzerland's total exports.
U.S. Trade Representative Jamieson Greer said earlier that the U.S. "essentially reached a deal with Switzerland" and that the White House would announce details later on Friday.
In a statement, the Swiss government said the deal, which includes Liechtenstein, will reduce Swiss import duties on U.S. industrial products, fish and seafood and agricultural products "that Switzerland considers non-sensitive."
Switzerland will grant the U.S. duty-free bilateral tariff quotas on 500 tons of beef, 1,000 tons of bison meat and 1,500 tons of poultry meat, the government said.
Greer told CNBC the deal would involve Switzerland shifting "a lot of manufacturing here to the United States - pharmaceuticals, gold smelting, railway equipment. So we're really excited about that deal and what that means for American manufacturing."
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 U.S.
"For the industrial sector, which was subject to a 39% tariff since August 1, this is good news. For the first time, we have the same conditions in the U.S. market as our European competitors," said Nicola Tettamanti, president of Swissmechanic, which represents small and medium-sized manufacturers.
"It's a great relief on tariffs, but additional economic burdens and risks for Switzerland remain," said Hans Gersbach, a director of the KOF Swiss Economic Institute at ETH Zurich.
Switzerland's machinery, precision instruments, watchmaking, and food sectors, which export to the U.S., would see the most relief, Gersbach said.
KOF forecasts Swiss economic growth of 0.9% in 2026, but this would exceed 1% with the lower tariff rate, he added.
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 neighboring European economies were subject to tariffs of only around 15%," she said.
Swiss industry on Friday reported a 14% fall in exports to the U.S. during the three months through September, technology industry association Swissmem said, while machine tool makers saw shipments slump 43%.
(Reporting by John Revill; Additional reporting by Dave Graham and Emma Farge; Writing by David Lawder and John Revill, Editing by Rod Nickel and Matthew Lewis)
