Under the deal, the U.S. will lower tariffs on imported Swiss products from 39% to 15%, bringing Switzerland on par with European Union exporters. Swiss Economy Minister Guy Parmelin said the agreement affects roughly 40% of Switzerland’s exports and provides a 15% tariff ceiling for pharmaceuticals, limiting the impact of U.S. Section 232 national security duties, which could have reached 100% on certain patented drugs. The cap will also extend to semiconductors and other key sectors.
“This agreement tears down longstanding trade barriers and opens new markets for American goods,” U.S. Trade Representative Jamieson Greer said, highlighting the potential for massive Swiss investment to support U.S. industries such as pharmaceuticals and create thousands of jobs.
The first tranche of investments, estimated at $67 billion, is expected in 2026, including prior commitments such as $50 billion from Roche and $23 billion from Novartis, along with pledges from companies like ABB and railway equipment maker Stadler. Investments will target pharmaceuticals, medical devices, aerospace, and gold production.
The deal also introduces bilateral tariff quotas allowing duty-free U.S. exports of 500 tons of beef, 1,000 tons of bison, and 1,500 tons of poultry, while Switzerland will reduce tariffs on selected industrial and agricultural products, including nuts, fruits, seafood, and chemicals. Switzerland will also recognize U.S. motor vehicle safety standards, addressing longstanding concerns about market access for American-made cars and trucks.
Swiss industrial groups welcomed the agreement as leveling the playing field with EU competitors. Nicola Tettamanti, president of Swissmechanic, noted that industries previously subject to 39% tariffs will now enjoy the same conditions as EU exporters. Key sectors such as machinery, precision instruments, watchmaking, and food exports are expected to benefit most.
Economists predict the tariff reduction could boost Swiss economic growth beyond 1% in 2026, up from a previously forecasted 0.9%. Swiss exports to the U.S. fell sharply under the prior tariff regime, with technology shipments down 14% and machine tools down 43% in the three months through September, according to Swissmem.
“This agreement removes a major downside risk for Swiss industries and improves competitiveness globally,” said Nadia Gharbi, an economist at Swiss bank Pictet.