US and Switzerland Unveil Trade Deal to Unlock $200B Investment
Framework agreement aims to cut US tariffs to 15% and reduce the $38.5 billion American goods deficit with the alpine nation by 2028.
The Trump administration has announced a landmark trade agreement framework with Switzerland and Liechtenstein, securing a commitment for at least $200 billion in new investment into the United States by 2028 in exchange for significant tariff reductions.
The deal, unveiled Friday, is designed to tackle the longstanding U.S. goods deficit with Switzerland, which reached approximately $38.5 billion in 2024. Under the terms of the framework, the U.S. will lower its tariffs on Swiss and Liechtenstein products from a potential high of 39% to a maximum of 15%, aligning them with the rates applied to the European Union.
In return, Switzerland and Liechtenstein will eliminate tariffs on a range of American industrial, agricultural, and seafood products. The agreement also establishes new duty-free quotas for U.S. goods, including beef and poultry, and addresses non-tariff barriers that have historically complicated market access for American exporters.
"This historic agreement is a huge win for American farmers, workers, and businesses," President Donald Trump said in a statement. "We are rebalancing our trade relationships, bringing back investment, and putting America first."
The trade relationship between the U.S. and Switzerland is substantial, with total trade in goods and services amounting to over $188 billion last year. While the U.S. faces a significant deficit in goods—driven largely by imports of pharmaceuticals, chemicals, and luxury items like watches—it enjoys a robust surplus in services. According to government data, the U.S. services trade surplus with Switzerland was nearly $30 billion in 2024, a fact that complicates a simple reading of the trade balance.
The framework is the result of years of negotiations and aims to formalize a more favorable trade environment. As part of the announcement, several major Swiss companies, including Roche, Novartis, and ABB, have already signaled their intent to expand investments in the U.S., bolstering the $200 billion target.
Analysts see the move as a pragmatic step to de-escalate trade tensions while encouraging foreign direct investment. The focus on investment commitments rather than purely on trade flows marks a strategic approach to addressing economic imbalances. According to reports from Reuters, the deal is expected to provide a particular boost to the U.S. medical device and dairy industries by streamlining Swiss regulatory requirements.
Both sides aim to finalize the complete terms of the agreement by the first quarter of 2026. The successful implementation of the framework could serve as a template for future bilateral trade deals as the administration continues to reshape U.S. trade policy.