US Slashes Swiss Tariffs to 15% as Switzerland Commits $200 Billion Investment by 2028

The United States and Switzerland have announced a major trade framework that will significantly reshape bilateral economic ties. As part of the agreement, Washington will reduce tariffs on Swiss imports to 15% from 39%, while Switzerland has pledged to invest $200 billion in the US by the end of 2028.

This major announcement was confirmed by the White House, which emphasised that the agreement aims to reopen markets, reduce trade barriers, and strengthen economic cooperation between the two nations.

US Cuts Tariffs, Switzerland Pledges Massive Investment

Under the new framework, the US will implement a lower tariff structure across a range of Swiss goods. According to US Trade Representative Jamieson Greer, the agreement removes longstanding barriers and will open new markets for American products.

Greer said the US welcomes the “massive Swiss investment” that will help reduce the deficit in pharmaceuticals and other key sectors, and create thousands of jobs across the country.

Of the $200 billion Swiss investment, at least $67 billion is expected to come in 2026 alone, the White House noted.

The investment total also includes earlier commitments, such as:

• $50 billion from Roche

• $23 billion from Novartis

• Additional pledges from ABB, Stadler, and other major Swiss firms.

These investments will target key US sectors, including pharmaceuticals, medical devices, aerospace, and gold manufacturing.

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Swiss Exports Get Tariff Relief; Key Sectors to Benefit

Swiss Economy Minister Guy Parmelin said the tariff cut to 15% puts Switzerland on an equal footing with the European Union. The revised tariff structure impacts about 40% of Switzerland’s exports to the US.

Parmelin also noted that the 15% ceiling will apply to future US Section 232 national security tariffs, preventing any sharp hikes, especially on patented pharmaceutical products that could have gone up to 100%.

He said the move removes the risk of sector-specific tariff spikes in critical industries, including pharmaceuticals and semiconductors.

Switzerland will also lower its own import duties on several US products, including:

• Industrial goods

• Fish and seafood

• Agricultural items are considered “non-sensitive”

Additionally, Switzerland will offer duty-free quotas to the US on:

• 500 tons of beef

• 1,000 tons of bison meat

• 1,500 tons of poultry meat

The US, in turn, will receive recognition for its motor vehicle safety standards, addressing long-standing American concerns about European import rules.

Deal Expected to Boost Swiss Competitiveness

Swiss industry groups praised the agreement, noting it aligns Swiss companies with EU competitors who already enjoy a 15% tariff rate.

According to Swissmechanic President Nicola Tettamanti, Swiss firms—especially smaller manufacturers—will now compete on equal terms in the US market for the first time since tariffs were raised to 39% in August 2024.

Key exporting sectors that are expected to benefit include:

• Machinery

• Precision instruments

• Watchmaking

• Processed food products

Economic experts also view the agreement positively. Hans Gersbach of the KOF Swiss Economic Institute said the tariff cut could lift Swiss economic growth above the projected 0.9% in 2026, potentially pushing it past 1%.

Swiss Exports to the US Hit Hard Before Tariff Reduction

The tariff relief comes after Swiss industries reported substantial declines in exports to the US. According to Swissmem, export levels fell 14% in the three months through September, while machine tool makers saw shipments plunge 43%.

Switzerland reported a $38.3 billion trade surplus with the US in 2024, which rose to $55.7 billion in 2025 through July. This increase was mainly due to import front-loading ahead of tariff hikes imposed by President Donald Trump in early April.

Economist Nadia Gharbi from Pictet said the tariff reduction removes major downside risks for Switzerland and improves the nation’s overall competitiveness, especially against neighbouring European exporters.

Negotiations to Conclude by 2026

The US, Switzerland, and Liechtenstein aim to finalise the trade agreement by the first quarter of 2026. Until then, lower tariff rates may begin applying within “days or weeks” once US customs systems are updated, according to Swiss officials.

The deal marks a significant step in stabilising cross-border trade, strengthening supply chains, and securing long-term economic cooperation between the two strategic partners.

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