U.S.-Switzerland Trade Agreement Lowers Tariffs, Spurs Investment

The United States and Switzerland have agreed to cut tariffs on Swiss goods from 39% to 15%. This move is part of a deal where Swiss companies will invest $200 billion into the U.S. economy by 2028. The agreement aligns Swiss exports on par with the EU, benefiting several sectors.

The United States has agreed to significantly reduce tariffs on Swiss goods from 39% to 15%, as part of a new framework trade agreement. This deal also includes a Swiss pledge to invest $200 billion in the U.S. economy by 2028, the Swiss government announced Friday.

"This agreement places Switzerland on an equal standing with the European Union," stated Swiss Economy Minister Guy Parmelin. The tariff reduction, expected to activate within weeks, aims to facilitate Swiss exports, with a significant focus on pharmaceuticals and life sciences, though specifics remain undisclosed.

The U.S. Trade Representative, Jamieson Greer, highlighted the benefits for American manufacturing, with the deal requiring Swiss industries to establish production in the U.S. across sectors like pharmaceuticals and railway equipment. The agreement ensures a 15% tariff cap for Swiss drugmakers, shielding them from potential higher tariffs under the U.S. Section 232 national security duties.

(With inputs from agencies.)