Switzerland, United States Reach Deal to Cut Tariffs

Switzerland and the United States have reached an agreement to reduce Donald Trump’s 39% tariffs on Swiss imports down to 15%, as part of a broader deal that includes a commitment from Switzerland to invest US$200 billion in the United States. Swiss Economics Minister Guy Parmelin described the agreement as a “great relief” for the Swiss economy, which had suffered setbacks since the tariffs were implemented last August. He credited a recent White House meeting between Swiss business leaders and Trump as key in advancing the deal.

Earlier attempts by Swiss President Karin Keller to negotiate tariff relief had been unsuccessful, with Trump reportedly dismissing her efforts. However, after the Nov. 4 meeting with Swiss business representatives, Trump confirmed that negotiations were underway. US Trade Representative Jamieson Greer hailed the outcome, emphasizing Trump’s deal-making for the benefit of the American people.

Chief Swiss negotiator Helene Budliger described the agreement as the result of intensive efforts. Parmelin noted that the new tariff aligns Switzerland with the 15% rate already established between the US and EU countries. The deal also involves Switzerland investing US$200 billion in the US by 2028, with one-third expected by 2026, and includes the removal of tariffs on certain US meat exports such as beef, bison, and poultry.

Swiss industrialists, particularly those in luxury goods, commodities, and gold, played a central role due to their existing connections with Trump. Rolex CEO Jean Frédéric Dufour had shared the VIP box with Trump at the US Open in September, and he later visited the Oval Office with fellow executives Johann Rupert of Richemont and Marwan Shakarchi of MKS, bringing a Rolex desk clock and other gifts.

The Swiss government plans for the US$200 billion investment to include pharmaceutical ventures, a major US plant by aircraft manufacturer Pilatus, expansion of train-maker Stadler in Utah, and gold refining projects. Switzerland currently serves as a global hub for gold storage, while New York is a major trading center.

The agreement will take effect only after approval by the Swiss parliament and a national referendum, with implementation expected in the coming weeks.

Swiss-US Relations
The United States is Switzerland’s second-largest trading partner and its top destination for exports and foreign direct investment, making it a key contributor to Swiss prosperity and security. Diplomatic relations were formalized through a strategic partnership dialogue established in 2021, numerous bilateral agreements covering trade, taxation, research, and education, and regular inter-parliamentary contacts. Switzerland has also acted as a protecting power for US interests in countries like Cuba and Iran.

Economically, Switzerland’s direct investment in the US reached US$360 billion in 2023, ranking it the sixth-largest foreign investor. Trade is robust, with 2024 imports from the US at US$33.4 billion and exports at US$81.7 billion. Around 500 Swiss companies operate in the United States, employing approximately 340,000 people, while over 1,300 US companies in Switzerland employ nearly 110,000.

The countries also cooperate in education, research, and innovation. Programs like Swissnex in Boston and San Francisco, bilateral science agreements, and Swiss Government Excellence Scholarships facilitate academic and professional exchanges.