Switzerland secures US tariff rate cut to 15%

Economics Minister Guy Parmelin and other members of the Swiss government in Bern on Friday. Keystone / Anthony Anex

The United States will cut its tariffs on goods from Switzerland to 15% from 39% under a new framework trade agreement. Swiss Economics Minister Guy Parmelin reached a deal after a whirlwind visit to Washington on Thursday, the Federal Council said on Friday.

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“Switzerland and Liechtenstein have signed a non-binding memorandum of understanding with the United States. On this basis, the United States will reduce the country-specific additional tariff to 15%,” the government said in a statementExternal link.

Under the declaration of intent, Switzerland will lower its import duties on a range of American products at the same time as the US. In addition to all industrial products, fish and seafood, this includes agricultural products from the US that Switzerland considers non-sensitive. Switzerland will grant the US duty-free bilateral tariff quotas on 500 tons of beef, 1,000 tons of bison meat and 1,500 tons of poultry meat, the government said.

Furthermore, Swiss companies are planning to make direct investments of $200 billion (CHF159 billion) in the US by the end of 2028. These investments also include elements that strengthen vocational training, the government said.

Helene Budliger Artieda, director of the State Secretariat for Economic Affairs (SECO), said that the pharmaceutical sector would make up a large portion of the $200 billion.

“Regarding investments, I can’t say I’m talking about specifics right now, but it’s clear that a large portion is coming from the pharmaceutical sector, or I would say life sciences, because medtech is also planning certain investments,” she told reporters.

“Switzerland has not made any concessions that would limit its ability to act or its neutrality,” Parmelin added at the press conference.

Constructive commitment

Earlier in the afternoon, the Federal Council had announced on the social media platform X that it had found a solution. It thanked US President Donald Trump “for his constructive engagement”.

Switzerland and the U.S. have successfully found a solution: U.S. tariffs will be reduced to 15%. Thanks to President Trump @POTUSExternal link for the constructive engagement. The meeting @USTradeRepExternal link with Amb. J. Greer was productive. Further details will be announced at 4pm. 🇨🇭🤝🇺🇸

— Swiss Federal Government (@SwissGov) November 14, 2025External link

The Swiss authorities added that a recent meeting between Parmelin and US Trade Representative Jamieson Greer had been “productive”.

Greer confirmed in a TV interview with CNBC that the US “essentially reached a deal with Switzerland”.

🚨 @USTradeRepExternal link: "We've essentially reached a [trade] deal with Switzerland, so we'll post details of that today… We're really excited about that deal and what it means for American manufacturing." pic.twitter.com/sxf3LuDOubExternal link

— Rapid Response 47 (@RapidResponse47) November 14, 2025External link

The announcement brings the US tariff rate on Swiss goods in line with those from the European Union. Parmelin told reporters in Bern that the tariff reduction would provide relief for about 40% of Switzerland’s total exports.

‘Great relief’

Swiss industrial groups welcomed the deal.

“For the industrial sector, which was subject to a 39% tariff since August 1, this is good news. For the first time, we have the same conditions in the US market as our European competitors,” said Nicola Tettamanti, president of Swissmechanic, which represents small and medium-sized manufacturers.

“It’s a great relief on tariffs, but additional economic burdens and risks for Switzerland remain,” said Hans Gersbach, a director of the KOF Swiss Economic Institute at ETH Zurich.

Switzerland’s machinery, precision instruments, watchmaking, and food sectors, which export to the US, would see the most relief, Gersbach said.

Swiss industry has been suffering under the heavier tariff regime. On Friday technology industry association Swissmem reported a 14% fall in exports to the US during the three months through September, while machine tool makers saw shipments slump 43%.

This article was updated after a press conference in Bern on Friday at 4.30pm.

Translated from German by DeepL/sb

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