The United States and Switzerland have announced a framework trade agreement that includes the US slashing its tariffs on imported Swiss products to 15 per cent from 39 per cent and a pledge by Swiss companies to invest billion of dollars in the US by the end of 2028.
The United States and Switzerland, joined by Liechtenstein, aim to conclude negotiations to finalise their trade deal by the first quarter of 2026, the White House said in a statement.
US Trade Representative Jamieson Greer said the agreement tears down longstanding trade barriers and opens new markets for US goods.
He welcomed “massive Swiss investment to help reduce our deficit in pharmaceuticals and other key sectors” that will generate thousands of jobs across the US.
Of the $US200 billion ($A307 billion) in pledged Swiss investments in the United States, at least $US67 billion will come in 2026, the White House said.
They will target sectors including pharmaceuticals, medical devices, aerospace and gold manufacturing, it said.
“This agreement puts Switzerland on an equal footing with the European Union and brings the tariff level down from 39 per cent to 15 per cent,” Swiss Economy Minister Guy Parmelin said in announcing the deal, which affects about 40 per cent of Switzerland’s exports.
“Of course, we would prefer (the $US200 billion) to be invested in Switzerland,” Parmelin added.
“And that’s why the Federal Council in parallel is doing everything to see how we can reduce costs for our businesses.”
The lower tariff rate is likely to be activated within “days, weeks,” as soon as the US customs processing systems can be adjusted, said Helene Budliger Artieda, director of Switzerland’s State Secretariat for Economic Affairs.
She added that a large portion of Swiss investments in US production would come from the pharmaceuticals and life sciences sectors but declined to provide specifics.
Pharmaceuticals is by far the largest export sector from Switzerland to the US.
The deal guarantees a 15 per cent tariff ceiling for Swiss drug makers, including Roche and Novartis, from US President Donald Trump’s forthcoming Section 232 national security duties for the sector, which could reach 100 per cent for certain patented drugs.
Parmelin said the 15 per cent cap would also apply to other future Section 232 duties, including semiconductors, putting it on the same footing as the EU.
“The risk of much higher sector-specific tariffs is therefore ruled out,” Parmelin added.
A Swiss government statement said the tariff agreement, which includes neighbouring 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 tons of beef, 1000 tons of bison meat and 1500 tons of poultry meat, the government said.
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