President Donald Trump announced a framework for a trade deal with Switzerland and Liechtenstein on Friday, aiming to eliminate the $38.5 billion goods trade deficit by 2028 and securing pledges for at least $200 billion in U.S. investment.
The deal follows Trump’s imposition of 39% tariffs on Swiss imports in August.
Richemont Chairman Johann Rupert had expressed optimism on Thursday about resolving the tariff dispute, calling it a “misunderstanding.”
Major Investment Commitments Announced
Swiss pharmaceutical and industrial leaders, including Roche Holding AG, Novartis AG (NYSE:NVS), ABB Ltd. (NYSE:ABB), and Stadler, have pledged investments under the framework, with at least $67 billion expected in 2026.
The investments will create jobs across pharmaceuticals, machinery, medical devices, aerospace, construction, advanced manufacturing, and energy infrastructure sectors in all 50 states.
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Tariff Structure and Market Access
Switzerland and Liechtenstein will face a cumulative reciprocal tariff rate capped at 15%, matching European Union treatment. The trading partners intend to remove tariffs on nuts, fish, seafood, certain fruits, chemicals, and spirits, including whiskey and rum.
Switzerland also plans to impose tariff rate quotas on U.S. exports of bison, beef, and poultry.
Supply Chain and Digital Trade Provisions
The Framework also includes coordination on export controls, sanctions, and investment screening.
Partners have also agreed to digital trade principles that include refraining from imposing digital services taxes.
Switzerland has committed to balancing bilateral trade with the United States as part of negotiations that are expected to conclude in early 2026.
On Friday, iShares MSCI Switzerland ETF (NYSE:EWL) closed down 0.52% at $57.55, while Franklin FTSE Switzerland ETF (NYSE:FLSW) slipped 0.46% to $39.75.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
