Nov 14, 2025
Reading time 3 min.
U.S. and Switzerland Reach Agreement to Reduce Tariffs to 15%
The United States and Switzerland have reached an agreement to cut the tariff on Swiss imports from 39% to 15%, restoring more favorable trade conditions for watches, pharmaceuticals, and precious-metals products. The revised rate is expected to take effect in the coming weeks.
The United States and Switzerland have reached a new trade agreement that will lower the tariff on Swiss exports from 39 percent to 15 percent. According to announcements from both governments, the reduced rate will bring Swiss goods, including pharmaceuticals, gold, chocolate, and watches, back in line with the tariff level applied to products from the European Union.
The deal follows months of tension after the U.S. imposed the 39 percent levy in August, a rate described by Swiss officials as economically damaging due to Switzerland’s strong export reliance. The tariff had directly affected watchmakers such as Rolex and Richemont, as well as companies in the pharmaceutical and precious-metals sectors.
U.S. officials said the agreement came after discussions in Washington this week and after a recent meeting between Swiss business leaders and President Trump. As part of the arrangement, the U.S. government stated that Swiss companies will expand their manufacturing footprint in the United States in areas including pharmaceuticals, railway equipment, and gold refining.
Swiss Economy Minister Guy Parmelin said the country has committed to $200 billion in U.S. investments through 2028, with the White House indicating that a significant portion of that spending is expected in 2026. The U.S. also agreed to cap tariffs on Swiss-made pharmaceuticals and semiconductors at 15 percent.
Officials in Switzerland described the agreement as mutually beneficial, noting that previously announced U.S. expansions by major pharmaceutical and gold-refining firms will now be incorporated into the investment package. The revised tariff rate is expected to take effect within several weeks.
The update arrives as the U.S. continues broader trade negotiations with multiple countries and awaits a Supreme Court decision that could affect the administration’s tariff authority.
