The United States will slash its tariffs on goods from Switzerland to 15 per cent from a crippling 39pc under a new framework trade agreement that includes a pledge by Swiss companies to invest $200 billion into the US by the end of 2028, the Swiss government said yesterday.
The announcement by Swiss Economy Minister Guy Parmelin brings the US tariff rate on Swiss goods in line with those from the European Union. Parmelin told a news conference that the tariff reduction would provide relief for about 40pc of Switzerland’s total exports.
US Trade Representative Jamieson Greer said earlier that the US “essentially reached a deal with Switzerland”.
In a statement, the Swiss government said the deal, which includes Liechtenstein, will reduce Swiss import duties on US industrial products, fish and seafood and agricultural products “that Switzerland considers non-sensitive.”
Switzerland will grant the US duty-free bilateral tariff quotas on 500 tonnes of beef, 1,000 tonnes of bison meat and 1,500 tonnes of poultry meat, the government said.
Greer told CNBC the deal would involve Switzerland shifting “a lot of manufacturing here to the United States – pharmaceuticals, gold smelting, railway equipment. So we’re really excited about that deal and what that means for American manufacturing.”
Swiss industrial groups welcomed the deal, saying it would put them on a level playing field with competitors from the European Union, which agreed to a 15pc tariff on EU exports to the US.
“For the industrial sector, which was subject to a 39pc tariff since August 1, this is good news. For the first time, we have the same conditions in the US market as our European competitors,” said Nicola Tettamanti, president of Swissmechanic, which represents small and medium-sized manufacturers.
“It’s a great relief on tariffs, but additional economic burdens and risks for Switzerland remain,” said Hans Gersbach, a director of the KOF Swiss Economic Institute at ETH Zurich.
Switzerland’s machinery, precision instruments, watchmaking, and food sectors, which export to the US, would see the most relief, Gersbach said.
KOF forecasts Swiss economic growth of 0.9pc in 2026, but this would exceed 1pc with the lower tariff rate, he added.
Nadia Gharbi, an economist at Swiss bank Pictet, said the tariff reduction removed the main downside risks for the country’s economy and represents a clearly positive development for Swiss industries and for the overall growth outlook.
“Under the previous tariff regime, Switzerland suffered a significant loss of competitiveness – not only because of the strength of the Swiss franc, but also because neighbouring European economies were subject to tariffs of only around 15pc,” she said.
Swiss industry yesterday reported a 14pc fall in exports to the US during the three months through September, technology industry association Swissmem said, while machine tool makers saw shipments slump 43pc.
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