US to slash tariffs on Switzerland to 15% from crippling 39%

"The United States will slash its tariffs on goods from Switzerland to 15 percent from a crippling 39 percent under a new framework trade agreement that includes a pledge by Swiss companies to invest $200bn into the US by the end of 2028, the Swiss government has said. The announcement by Swiss Economy Minister Guy Parmelin on Friday brings the US tariff rate on Swiss goods in line with those from the European Union (EU). Parmelin told a news conference that the tariff reduction would provide relief for about 40 percent of Switzerland's total exports."

"The US, Switzerland and Liechtenstein, which is part of the deal, aim to conclude negotiations to finalise their trade deal by the first quarter of 2026, the White House said in a statement on Friday as the two nations announced their framework agreement. The lower tariff rate is likely to be activated within days, weeks, as soon as the US customs processing systems can be adjusted, said Helene Budliger Artieda, director of Switzerland's State Secretariat for Economic Affairs."

"US Trade Representative Jamieson Greer told CNBC the deal would involve Switzerland shifting a lot of manufacturing here to the United States pharmaceuticals, gold smelting, railway equipment. So we're really excited about that deal and what that means for American manufacturing. The deal guarantees a 15 percent tariff ceiling for Swiss drugmakers, including Roche and Novartis from US President Donald Trump's forthcoming Section 232 national security duties for the sector, which could reach 100 percent for certain patented drugs."

The United States will reduce tariffs on Swiss goods to 15 percent from 39 percent under a new framework trade agreement that includes a $200 billion Swiss investment pledge in the US by the end of 2028. The tariff reduction aligns Swiss rates with those for the European Union and is expected to relieve about 40 percent of Switzerland's exports. The US, Switzerland and Liechtenstein aim to finalise the deal by the first quarter of 2026. The lower rate could be activated within days or weeks once US customs systems are adjusted. Major investment flows are expected in pharmaceuticals and life sciences, and the deal provides a 15 percent tariff ceiling for Swiss drugmakers against possible Section 232 duties.

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