Economy

Swiss-US Trade Deal: How a $200 Billion Investment and Tariff Cuts Could Reshape the Economic Landscape

US and Switzerland reach trade deal: US lowers tariffs, Switzerland invests $200B by 2028.

November 15, 2025, 9:46 AM

The US Capitol Building framed by autumn trees and a street with parked cars in Washington DC

The United States Capitol Building, the legislative center of the US government, framed by trees with autumn foliage. By Volodymyr TVERDOKHLIB / Shutterstock.com.

Executive Summary

The United States and Switzerland reached a trade agreement reducing US tariffs on Swiss imports from 39% to 15%.

In return for the tariff reduction, Switzerland committed to investing $200 billion in the US by the end of 2028.

The deal, which places Switzerland on par with the European Union’s tariff rates, was announced months after President Trump imposed high duties and coincides with broader tariff adjustments on agricultural imports.

The Story So Far

The trade agreement between the United States and Switzerland directly addresses President Donald Trump’s earlier imposition of a significant 39% import duty on Swiss goods, which was the highest among developed countries and had placed considerable pressure on Switzerland’s export-reliant economy and its crucial trade relations with the US.

Why This Matters

This trade agreement significantly benefits Switzerland’s export-reliant economy by reducing US tariffs, making its goods more competitive and potentially easing consumer costs. Concurrently, Switzerland’s commitment to invest $200 billion in the US is projected to create thousands of American jobs, reduce the US pharmaceutical deficit, and boost key sectors like medical devices and aerospace, aligning with broader efforts by President Trump to address domestic concerns over the rising cost of living through tariff adjustments.

Who Thinks What?

US Trade Representative Jamieson Greer views the “massive” Swiss investment as beneficial for the US economy, anticipating it will help reduce the US deficit in pharmaceuticals and create thousands of jobs.

Swiss Economy Minister Guy Parmelin sees the agreement as placing Switzerland on par with the European Union regarding tariff rates for approximately 40% of Swiss exports.

President Donald Trump’s administration, which initially imposed high duties on Swiss imports, has now lowered these tariffs and others on agricultural products, amidst increasing domestic pressure due to the rising cost of living.

The United States and Switzerland have reached a trade agreement reducing US tariffs on Swiss imports from 39% to 15%, following talks in Washington this week. In return, Switzerland has committed to investing $200 billion in the US by the end of 2028. The deal was announced Friday, months after President Donald Trump imposed high duties that had concerned the export-reliant Swiss economy.

Agreement Details

The framework trade agreement was finalized after discussions in Washington involving Swiss Economy Minister Guy Parmelin. US Trade Representative Jamieson Greer stated that the “massive” Swiss investment is expected to help reduce the US deficit in pharmaceuticals and create thousands of jobs across the country.

Parmelin noted that the agreement, which affects approximately 40% of Swiss exports, places Switzerland on par with the European Union regarding tariff rates. The US tariffs on Swiss imports will be lowered to 15%, aligning them with the duties imposed on the EU.

Background to the Tariffs

In August, President Trump had imposed a 39% import duty on Swiss imports. This was the highest tariff among developed countries, causing significant pressure on Switzerland’s trade relations with the US, one of its most crucial trading partners.

The steep duties had threatened the Swiss economy, which relies heavily on exports. Key Swiss exports include pharmaceuticals, watchmaking, industrial machinery, chocolate, and cheese.

Investment and Future Prospects

Under the agreement, Switzerland will send pharmaceuticals, gold smelting, and railway equipment to the US. The Swiss government confirmed that companies from Switzerland intend to make $200 billion in direct investments in the US by the end of 2028.

The White House specified that these investments in US production would target sectors such as medical devices, aerospace, and gold manufacturing. Both nations expressed hope that a comprehensive trade deal could be concluded next year.

Broader Tariff Adjustments

The agreement with Switzerland was announced on the same day President Trump lowered tariffs on a range of agricultural imports. These products include beef, coffee, tomatoes, and bananas.

This order comes as the Trump administration faces increasing domestic pressure due to the rising cost of living. Recent elections in New York, New Jersey, and Virginia highlighted the cost of living crisis as a key concern for voters. The new order exempts these agricultural products from the “reciprocal” tariffs President Trump had imposed on most countries this year.