Last week representatives from Switzerland and the U.S. announced the framework for a new trade agreement between the two countries.
The deal was announced on Friday, a day after talks were held in Washington. The agreement would lower tariffs on Swiss imports to the U.S. from 39 percent to 15 percent, with the exception of some products. It also requires Swiss companies to pledge to $200 billion worth of investment in the U.S. economy by 2028.
According to the White House, $67 billion of the pledged $200 billion is expected to be invested next year.
The new deal also reduces the tariff rate for Liechtenstein to 15 percent.
Here’s everything you need to know about the new agreement.
What are the current conditions for trade between the US and Switzerland?
In August, Switzerland was hit with a hefty 39 percent tariff as a part of US President Donald Trump’s wide-reaching protectionist trade policy. This rate was among the highest of any Trump imposed in his tariff blitz.
Swiss business leaders and organizations have pleaded with Trump to reduce this high tariff rate, which they said had hit the country’s economy hard. Tariffs are applied to consumer prices on imported goods in the US. These tariffs make Swiss imports more expensive for American consumers and mean Swiss businesses can expect to sell less.
Overall exports dropped by 3.9 percent between the beginning of July and the end of September, according to the Switzerland’s customs service.
Swiss exports to the US in the third quarter of 2026 dropped by 8.2 percent. The watch industry was particularly affected by these tariffs, with exports to the US dropping by 24 percent in August and by half in September.
“In our opinion, the 39 percent tariff was unjustified and created a great deal of uncertainty for our sector,” Yves Bugmann, the head of the Swiss watchmaking federation, told the AFP.
READ MORE: Steep US tariffs hit Swiss exports hard, new figures reveal
Is the deal between the countries finalised?
Negotiations will likely not be finalised until the first quarter of 2026, according to the White House.
But US Trade Representative Jamieson Greer said in an interview on Friday that the US has “essentially reached a deal with Switzerland.”
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How does this deal compare to trade agreements between the US and the EU?
The lower tariff rate for Switzerland and Liechtenstein is in line with the tariff rate for the EU, which is also 15 percent.
Swiss Economy Minister Guy Parmelin noted that the deal puts Switzerland on “equal footing with the European Union.”
“For the first time, we benefit from the same framework conditions in the American market as our European competitors,” said Nicola Tettamanti, head of the Swiss tech and mechanical engineering organisation Swissmem.
READ MORE: US tariff deal sparks relief for Swiss firms
Which industries would be most affected?
The tariff rate for pharmaceuticals and semiconductors was capped at 15 percent, which was a relief for Swiss producers of these products. “The risk of much higher sector-specific tariffs is therefore ruled out,” Parmelin said.
Pharmaceuticals are Switzerland’s largest export sector. Without this stipulation, the industry could have been affected by additional tariffs.
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What are Swiss business leaders and politicians saying about the agreement?
Swiss representatives seemed to express optimism after the deal was announced, but they stopped short of outright enthusiasm.
“This is a positive outcome… I am satisfied,” said Parmelin at a press conference on Friday, though he acknowledged that “the current situation is not the same as it was before April 2nd,” referring to the date Trump’s tariffs went into effect.
Many Swiss business leaders have expressed relief at the tentative new deal. Bugmann, the head of the Swiss watchmaking federation, told AFP that the deal was “good news.”
Vincent Subilia, the head of the Geneva’s chamber of commerce and industry told Swiss news agency Keystone-ATS that the negotiated rate was “still 15 percent too much.”
