GENEVA (AP) - In a significant development, Switzerland announced on Friday its intention to invest $200 billion in the United States by the year 2028. This announcement followed the finalization of a contentious agreement to reduce U.S. tariffs on Swiss goods, a deal that has been in the works amidst increasing trade tensions.
Swiss Economy Minister Guy Parmelin revealed that the Trump administration has consented to lower tariffs on most Swiss goods from an alarming 39% to 15%. This new tariff rate aligns with the level imposed on goods imported from the neighboring European Union, which had previously been a point of contention between the nations. The high tariff rate of 39% marked the steepest on any Western country, creating a significant barrier for Swiss exports and prompting urgent diplomatic discussions.
The Swiss Federal Council, which serves as the executive branch of the country, publicly expressed its gratitude towards President Trump for his "constructive engagement" through a post made on its X account. This expression of appreciation underscores the importance of this agreement not only to the Swiss economy but also to diplomatic relations between Switzerland and the United States.
The motivation behind seeking a reduction in tariffs arose after the Trump administration implemented a notable increase in tariffs on Swiss goods earlier this year. Initially set at 31%, the tariffs saw a sharp rise to 39% effective August 1, 2025. The sudden hike elicited a strong reaction from both Swiss government officials and business leaders who immediately pushed for negotiations to revert the steep tariffs.
The announcement on Friday, November 14, 2025, was seen as a major breakthrough after months of negotiations that had proven fruitless until that moment. For Switzerland, this agreement represents not only an economic boon with the anticipated $200 billion investment but also the potential for enhanced trade relations and access to the expansive U.S. market.
In conclusion, the reduction in tariffs and the commitment to invest in the U.S. reflects a significant shift in trade dynamics between Switzerland and the United States. As both nations await the implementation of this new agreement, it stands to benefit a range of industries, fostering a more balanced trade relationship between the two countries.
