Published by Global Banking & Finance Review®
Posted on November 11, 2025
4 min readLast updated: January 21, 2026
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Switzerland is negotiating with the US to reduce tariffs on its goods from 39% to 15%, impacting the luxury market and trade relations.
By John Revill and Dave Graham
ZURICH (Reuters) -Switzerland could clinch a deal with the United States to lower U.S. tariffs on Swiss goods to 15% as soon as Thursday or Friday, a Swiss source told Reuters on Tuesday.
The source said the deal could also arrive early next week, but cautioned an agreement to lower duties was not certain until U.S. President Donald Trump had given his approval.
Trump announced at the end of July that Swiss exports to the U.S. would be subject to a 39% tariff from August 7, among the highest duties levied in his global trade reset.
The move threatened Swiss access to one of its biggest markets for precision machinery, watches and chocolate by making its products more expensive than rivals from regions with lower import duties.
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The Swiss Economic Affairs Ministry, which has been leading the negotiations with Washington, declined to comment on ongoing discussions on Tuesday.
Economy Minister Guy Parmelin was in regular contact with the relevant authorities in the United States, including U.S. Trade Representative Jamieson Greer, the government said.
The pair held a video call on Friday, with Parmelin describing the talks as "very constructive".
On Monday, Trump said he was working on a deal to lower the tariffs on goods from Switzerland.
"I haven't set any number, but we're going to be working on something to help Switzerland," Trump said.
Swiss officials have pitched a package of investment pledges and proposals aimed at reducing the U.S. deficit. That has helped pave the way for a potential deal, the source said.
Bern has already offered to increase spending on defence equipment from the U.S. and give American energy firms greater access to the Swiss market.
It has also pitched a plan to step up gold refining capacity in the United States to help reduce the U.S. trade deficit with Switzerland, according to people familiar with the matter.
Swiss pharma giants Roche and Novartis have also said they would invest billions of dollars in the U.S. as part of a coordinated effort by the government and private sector.
A group of Swiss business leaders met Trump in the White House last week to discuss the impact of tariffs and presented him with a specially engraved gold bar and a Rolex watch, according to Swiss media.
LUXURY STOCKS RISE ON NEWS OF POTENTIAL DEAL
The meeting with executives from MSC, Rolex, Partners Group, Mercuria, Richemont and MKS helped thaw relations with Washington, it was reported.
"Tariffs at 15% are still very high, but a reduction from 39% would be clearly welcomed,” said Jean-Philippe Kohl, vice director of Swissmem, an industry association. "It would put Swiss companies on a level playing field with rivals from Germany, Austria, Italy and Japan who have the same 15% level."
Werner Salzmann, a lawmaker in the Swiss upper house of parliament, said: "A reduction in the U.S. tariffs to 15% would be very positive for Swiss industry, although of course 0% would be better."
News of a potential deal sent shares in Richemont and Swatch Group, owners of luxury Swiss watch brands, higher on Tuesday.
The United States is the biggest market for Swiss watches, accounting for 19% of all Swiss watch exports, according to the Swiss Watch Industry Federation, and is a major market for both companies.
Swatch, whose brands include Omega and Longines, said on Tuesday it would not comment on any deals before they had been implemented. Cartier-owner Richemont did not respond to a request for comment.
(Reporting by John Revill and Dave Graham, additional reporting by Ariane Luthi; Editing by Louise Heavens, Susan Fenton and Alex Richardson)
Economic growth is the increase in the production of goods and services in an economy over a period, often measured by Gross Domestic Product (GDP).
A trade deficit occurs when a country's imports exceed its exports, indicating that it is buying more from other countries than it is selling to them.
The luxury market encompasses high-end products and services that are often associated with exclusivity, quality, and premium pricing, appealing to affluent consumers.
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