US and Switzerland Reach Framework to Cut Trump-Era Tariffs to 15% as Swiss Pledge $200B Investment

The United States and Switzerland announced on Friday a framework agreement to sharply reduce tariffs introduced this year under President Donald Trump, while Switzerland pledged large-scale investment in the US to secure the White House's backing.

Swiss Economy Minister Guy Parmelin traveled to Washington for talks aimed at easing steep duties after the Trump administration surprised Bern in August by adding a 39% tariff on many imports from Switzerland — among the highest in the administration's global tariff measures.

Key terms of the framework

Under the outline agreed on Friday, the added tariff would be lowered to a 15% ceiling for products from Switzerland and Liechtenstein, the White House said. That 15% figure will act as an upper limit for goods that previously faced lower tariffs, while items already subject to duties above 15% will not be hit with additional levies — a treatment similar to US arrangements with other partners.

"We've essentially reached a deal with Switzerland," US Trade Representative Jamieson Greer told CNBC, adding that Swiss firms would move some manufacturing to the United States in sectors such as pharmaceuticals, gold smelting and railway equipment.

A White House statement said the two sides hope to conclude a full, formal agreement by the first quarter of 2026. In a Swiss government announcement, Bern said Swiss companies intend to make $200 billion in direct investments in the United States by the end of 2028, including initiatives to strengthen vocational education and training.

Cautious relief for exporters

The high tariff had threatened large parts of Switzerland's export-focused economy — notably watchmaking and industrial machinery — and affected sectors such as chocolate and cheese. While Switzerland's largest export sector, pharmaceuticals, had largely been exempted from the sweeping countrywide rates, it remained vulnerable to future targeting. The framework commits that if Washington imposes fresh duties, pharmaceutical goods and semiconductors from Switzerland and Liechtenstein would face a maximum 15% tariff.

In return, both governments said they intend to lift certain tariffs across agricultural and industrial product lines, citing various nuts, fish and seafood. The US and Swiss statements also said both sides plan to refrain from imposing digital services taxes.

Parmelin said talks will continue on key items including industrial machinery, steel, aluminum, coffee and cheese. Industry groups expressed guarded relief: Swissmem, representing the mechanical and electrical engineering sector, welcomed the move but warned it may be temporary. "We must not let our guard down," Swissmem president Martin Hirzel said.

Last week, leaders of six top Swiss firms, including Rolex and Richemont, met with President Trump to press for tariff relief. Yves Bugmann, president of the Federation of the Swiss Watch Industry, called the tariff reduction welcome news for an industry facing challenges such as an unpredictable Chinese market and said the prior 39% rate had "caused a great deal of uncertainty."

Since returning to the presidency, Trump has applied broad duties on trading partners around the world and imposed separate levies on sectors including steel, aluminum and autos. The framework marks a step toward easing one of the most severe recent tariff measures affecting a longstanding US partner.