In a significant development for international trade, the United States and Switzerland have successfully negotiated an agreement to dramatically lower tariffs on Swiss goods. The breakthrough was confirmed by officials from both nations on Friday, November 14, 2025.
Details of the Agreement
The core of the new pact focuses on a substantial reduction in import duties. The US will slash its tariffs on Swiss products from the current steep level of 39% down to 15%. This agreement comes after high-level talks in Washington, which included a visit from Switzerland's economy minister, Guy Parmelin, who sought relief from the duties imposed by the Trump administration earlier in the year.
US Trade Representative Jamieson Greer announced the progress, stating, "We've essentially reached a deal with Switzerland. So we'll post details of that today on the White House website." The Swiss government separately confirmed the terms, scheduling a news conference for 4:00 pm local time (1500 GMT) to provide further details.
Relief for Swiss Industries
The high 39% tariff rate, imposed by President Donald Trump in August, had sent shockwaves through Switzerland's export-dependent economy. Key sectors like watchmaking, industrial machinery, chocolate, and cheese were placed in a precarious position. While the pharmaceutical industry had a temporary exemption for medications, it faced constant uncertainty.
The announcement has been met with cautious relief by Swiss businesses. Swissmem, the association for the mechanical and electrical engineering industries, welcomed the news. Its president, Martin Hirzel, acknowledged the respite but issued a warning: "The reduction in tariffs is a temporary relief for the tech industry, but we must not let our guard down. New tariffs could be introduced." He urged continued efforts to reduce costs and open new markets.
Broader Trade Context and Future Outlook
This agreement aligns Switzerland's tariff level with that of other major US trading partners, such as the European Union and Japan, which had previously negotiated the 15% rate. This move levels the competitive playing field for Swiss exporters. Greer also indicated that the deal is expected to encourage Swiss companies to increase manufacturing within the United States, specifically mentioning sectors like pharmaceuticals, gold smelting, and railway equipment.
The deal represents a notable de-escalation in trade tensions. The Trump administration's wide-ranging tariff blitz had affected numerous global partners, with separate levies on sectors like steel, aluminum, and automobiles. The pressure from top Swiss firms, including the heads of Rolex and Richemont who met with Trump last week, appears to have contributed to this positive outcome.
