The United States has agreed to cut its tariffs on imports from Switzerland to 15%, with Swiss companies set to invest US$200 billion (A$306.4 billion) in the U.S. by the end of 2028.
Tariffs on Switzerland were initially 39%, but will now be in line with the U.S. tariffs on the European Union.
“Under the declaration of intent, at the same time as the reduction in U.S. tariffs, Switzerland will reduce import duties on a range of U.S. products. In addition to all industrial products, fish and seafood, this includes agricultural products from the U.S. that Switzerland considers non-sensitive,” wrote Switzerland’s government.
“The announcement of the reduction in additional U.S. tariffs on Swiss imports will serve to stabilise bilateral trade relations. Although overall tariffs remain higher than before the additional tariffs were introduced in April, the agreed reduction in additional tariffs is expected to have a positive impact on the Swiss economy.”
The trade agreement also applies to Liechtenstein, which will similarly have its tariffs lowered to 15%. Liechtenstein will invest at least $300 million into the U.S. under the deal, and increase the number of jobs its companies create in the U.S. by 50% across the next five years.
Switzerland and Liechtenstein have agreed not to impose digital service taxes, according to the White House. U.S. President Donald Trump threatened in August to add further tariffs to countries with these taxes, which impose a levy on global technology companies’ revenues.
Tariffs on Swiss pharmaceuticals and semiconductors will not exceed 15%. Trump has repeatedly threatened to impose additional tariffs on these sectors.
At least $67 billion in Swiss investment will arrive in 2026, the White House wrote, which would include previously announced commitments from businesses like pharmaceutical companies Roche and Novartis.
Swiss businesses heavily lobbied Trump ahead of the deal, with executives from companies like Rolex and MSC meeting with him earlier in November. Rolex executives gave Trump a gold-plated desk clock and invited him to the US Open final in September, while gold refiner MKS gifted an engraved gold bar.
U.S. trade with Switzerland totalled $188 billion last year, according to the U.S. Trade Representative, though U.S. exports dropped 9.9% from 2023.
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