US-Switzerland Tariff Agreement After Diplomatic Charm Offensive

Fri Nov 14 2025 22:47:25 GMT+0200 (Eastern European Standard Time)

Following a diplomatic charm offensive, the US has agreed to drastically reduce tariffs on Swiss exports from 39% to 15%. This deal includes a significant Swiss investment in the US economy.

In a recent and significant trade agreement, the US and Switzerland have settled on reducing steep tariffs imposed by President Trump from 39% to 15%. This decision follows a charm offensive by Swiss business leaders who presented gifts to Trump, leading to a promise of $200 billion in Swiss investments in the US over the coming years. The deal could revitalize trade and create jobs on both sides, with major implications for Swiss industries that have struggled under previous tariffs.

Switzerland and the US have agreed to cut President Donald Trump's steep 39% tariffs on Swiss exports to 15%, as part of a deal that involves a Swiss promise to invest $200bn (£150bn) in the US.

It's a great relief for our economy, said Swiss Economics Minister Guy Parmelin, who said significant damage had been done since the additional tariffs had kicked in last August.

Parmelin said a move by Swiss business leaders to meet Trump in the White House last week had proved decisive in reaching a deal. Industry chiefs visited the Oval Office, bearing gifts including a Rolex gold watch and a specially engraved gold bar from Swiss-based gold refining company MKS.

Initial attempts by Swiss President Karin Keller Sutter to change Trump's mind had fallen on deaf ears. Trump said she was a nice woman, but she did not want to listen. But after the 4 November encounter with Swiss business leaders, Trump revealed this week a deal was being worked on.

US Trade Representative Jamieson Greer confirmed an agreement had been reached, saying President Trump's unmatched dealmaking continues to deliver for the American people. The deal had involved very hard work, said chief trade negotiator Helene Budliger Artieda. Guy Parmelin said it would bring Switzerland into line with the 15% tariff rate negotiated with the US by its European Union neighbours.

The economics minister said it involved the Swiss economy investing $200bn directly in the US by 2028. A third of that Swiss money will be invested in the US in 2026 under the deal. Switzerland has also agreed to axe tariffs on a quota of US meat exports including beef, bison and poultry.

Greer said the deal tears down longstanding trade barriers and Swiss investment would bring thousands of new jobs. For Swiss industry, the deal could not come soon enough. Tech exports to the US are down 14.2% on the third quarter of last year, according to latest statistics - a dramatic fall since the tariff hike was imposed in August.

Swiss industry has been waiting for a deal with bated breath and a number of Swiss companies had warned they would have to furlough staff if nothing changed. Yves Bugmann, who heads the Swiss Watch Industry Federation, welcomed the deal after months of uncertainty.

Asked what kind of investment the Swiss government might make in the US that would add up to $200bn, Helene Budliger Artieda said there was a detailed list that included pharmaceuticals, but she singled out plans for plane manufacturer Pilatus to build a big US plant and train-maker Stadler to expand its US operations in Utah. Gold refining is also part of the plan.

The agreement will only become binding when it receives approval from the Swiss parliament, and then it will be put to a referendum.