On Friday in Zurich, the U.S. and Switzerland unveiled a framework trade agreement that slashes Washington’s country-specific tariff on Swiss imports to 15% from 39% in exchange for a pledge of $200 billion in Swiss investment in the United States by 2028. U.S. Trade Representative Jamieson Greer said the deal, which also covers Liechtenstein, will shift significant pharmaceutical, medical device, aerospace, gold and rail-equipment manufacturing into the U.S., according to details of the accord.
The agreement follows months of strain after Trump imposed one of his highest country-specific tariff rates on Switzerland in August, driving a 56% plunge in Swiss watch exports to the U.S. in September and a 14% drop in overall Swiss shipments over three months. Swiss watchmakers, precision-instrument makers and machinery firms furloughed workers and leaned on expanded government subsidies, while a strong franc and record-high gold prices added pressure. The new terms align Swiss tariffs with those for the European Union, cap future U.S. duties on Swiss pharma and chips at 15%, and secure U.S. recognition of American motor-vehicle safety standards, which Swiss industry groups say finally puts them on a “level playing field” with EU rivals.
Switzerland will also cut its own duties on selected U.S. industrial and farm products and grant duty-free quotas on American beef, bison and poultry. Economists at the KOF Swiss Economic Institute estimate the deal could lift Swiss growth above its prior 0.9% forecast for 2026 by removing a major downside risk. For the U.S., the White House argues that locking in Swiss investment and “managed” trade surpluses will help domestic manufacturing and reduce import-dependence in key sectors, even as overall tariff levels remain well above pre-April norms. Markets will now watch how quickly customs systems implement the lower rate and whether Swiss exporters, especially in luxury watches, can rebuild U.S. demand after months of disruption.
