A significant shift in U.S.–Switzerland trade relations was announced on Friday:
U.S. tariffs on Swiss goods will drop from 39% to 15%, aligning Switzerland with the EU tariff rate and removing a major competitive disadvantage for Swiss exporters.
🇺🇸🇨🇭 What’s in the Deal?
- Tariffs lowered to 15% — a major cut from the punitive 39% imposed earlier.
- Swiss companies commit $200 billion in U.S. investments by 2028.
- Agreement includes Liechtenstein and will also reduce Swiss import duties on U.S.:
- Industrial products
- Fish & seafood
- Selected agricultural goods
- Switzerland grants the U.S. duty-free quotas:
- 500 tons beef
- 1,000 tons bison
- 1,500 tons poultry
USTR Jamieson Greer highlighted that Switzerland will shift major manufacturing into the U.S., including pharmaceuticals, gold smelting, and railway equipment — strengthening U.S. industrial activity.
🔍 Why It Matters
Relief for nearly 40% of Switzerland’s exports.
Export-heavy industries—machinery, precision tools, watchmaking, food—were hit hard by the previous tariff regime.
Impacts highlighted by industry data:
- Swiss exports to the U.S. fell 14% over the last quarter.
- Machine tool shipments plunged 43%, according to Swissmem.
Economists now expect:
- Swiss GDP growth to exceed 1% in 2026 (vs. 0.9% previously forecast).
- A meaningful recovery in competitiveness after months of downturn.
📈 Industry Reactions
Swissmechanic (SMEs):
“This puts us on equal footing with EU competitors for the first time.”
Pictet Bank:
The tariff cut removes the biggest downside risk for Switzerland’s economy.
ETH Zurich – KOF Institute:
The deal reduces economic drag, but some structural risks remain.
📌 Why This Is a Big Global Shift
This agreement:
- Strengthens transatlantic supply chains
- Deepens U.S.–Swiss manufacturing integration
- Sets the stage for one of the largest European investment commitments in the U.S. to date
It is also one of the first major bilateral wins under the new U.S. tariff framework.