Breakthrough Trade Agreement: US Slashes Swiss Tariffs to 15%

Fri Nov 14 2025 21:44:06 GMT+0200 (Eastern European Standard Time)

The United States and Switzerland have finalized a landmark agreement to reduce tariffs drastically on Swiss exports following a diplomatic push and significant investment commitments. President Trump will cut the existing tariffs from 39% to 15% as Switzerland promises a $200 billion investment in the US economy by 2028.

In a significant decision, the US government has agreed to reduce tariffs on Swiss exports from 39% to 15%. The agreement was facilitated by Swiss business leaders who presented gifts to President Trump during a recent visit, underscoring the importance of diplomacy in trade negotiations. This deal also includes a commitment from Switzerland to invest $200 billion in the US over the next five years, aiming to bolster both economies after a challenging trade period.

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 in line with the 15% tariff rate negotiated with the US by its European Union neighbors. The economic 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 the latest statistics - a dramatic fall since the tariff hike was imposed in August.

Swiss industrialists appear to have been key, some particularly trading in luxury goods had contacts in Trump's circle. Last week Dufour met Trump again, this time in the Oval Office, along with fellow business leaders including Johann Rupert from luxury goods maker Richemont and Marwan Shakarchi from MKS.

Days after the meeting, Trump was pictured in the Oval Office with what looked very much like a Rolex Datejust desk clock, produced by the company as a collector's item, and worth tens of thousands of dollars. A White House official confirmed to the BBC the items were given to Trump.

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.

Helene Budliger Artieda mentioned that the investments planned would include pharmaceuticals and expansion of companies like Pilatus, known for aircraft manufacturing, in the US.

The agreement, expected to significantly improve trade relations, still awaits approval from the Swiss parliament and a subsequent referendum.