Switzerland wins tariff rate cut to 15% in US trade deal

ZURICH: The United States will slash its tariffs on goods from Switzerland to 15% from a crippling 39% under a new framework trade agreement, the Swiss government said on Friday.

The announcement followed U.S. Trade Representative Jamieson Greer saying the U.S. had “essentially reached a deal with Switzerland” and would announce details later on Friday.

The Swiss government said it would announce details shortly.

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.”

Greer said the U.S. would maintain a tariff on Swiss imports as part of the deal, but did not specify the 15% rate.

LEVEL PLAYING FIELD WITH EU

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 15% tariff on EU exports to the U.S.

“For the industrial sector, which was subject to a 39% tariff since August 1, this is good news. For the first time, we have the same conditions in the U.S. market as our European competitors,” said Nicola Tettamanti, president of Swissmechanic, which represents small and medium-sized manufacturers.

Swiss negotiators head for next round of tariff talks in Washington

“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 U.S., would see the most relief, Gersbach said.

KOF forecasts Swiss economic growth of 0.9% in 2026, but this would exceed 1% with the lower tariff rate, he added.

TALKS HAD BEEN ‘VERY POSITIVE’

Swiss Economy Minister Guy Parmelin returned home on Friday after talks with Greer in Washington, saying: “We clarified virtually everything.”

Parmelin declined to provide details of the discussions but said there would be further communication when everything is “finally clear.”

Swiss industry on Friday reported a 14% fall in exports to the U.S. during the three months through September, technology industry association Swissmem said, while machine tool makers saw shipments slump 43%.