US and Switzerland Finalize Trade Deal Slashing Tariffs for $200 Billion Investment

The United States and Switzerland formalized a significant bilateral economic accord on November 14, 2025, centered on substantial tariff reductions for Swiss goods in exchange for a major capital commitment from Swiss enterprises within the U.S. market. This agreement mandates a reduction in prevailing U.S. tariffs on Swiss imports, lowering the rate from an initial 39% to 15%, aligning Swiss trade terms with those currently applied to products from the European Union.

Central to the pact is a commitment from Swiss corporations to inject $200 billion into the American economy through direct investment by the close of 2028, according to official statements. A substantial portion of this capital, specifically a minimum of $67 billion, is earmarked for deployment during the 2026 calendar year, establishing an immediate benchmark for progress. This financial infusion is projected to catalyze the creation of thousands of well-paying American jobs distributed across all fifty states.

The comprehensive framework extends its scope to include the Principality of Liechtenstein, broadening the economic alignment beyond the primary two signatories. The sectors targeted for mutual benefit and increased trade volume are diverse, encompassing high-value industries such as pharmaceuticals, advanced medical devices, aerospace manufacturing, specialized gold production, machinery, and construction. Swiss Economy Minister Guy Parmelin indicated that the tariff adjustment is expected to take effect within several weeks following the announcement.

The White House and Swiss officials have explicitly set a measurable objective: the complete elimination of the U.S. goods trade deficit with Switzerland, which stood at over $38 billion in the preceding year, by the end of the 2028 timeframe. The U.S. goods trade deficit with Switzerland and Liechtenstein combined was $38.5 billion in 2024. The agreement is designed to foster reciprocal trade benefits, with Switzerland also granting the U.S. duty-free bilateral tariff quotas on specific agricultural products, including beef, bison meat, and poultry.

The final legal ratification of the entire agreement is scheduled for early 2026, providing a structured timeline for implementation and monitoring of the investment milestones. Economists tracking bilateral trade noted that aligning Swiss import tariffs with the European Union standard removes a significant historical point of friction in U.S.-Swiss commerce, putting Swiss industrial groups on a level playing field with EU competitors.