U.S. to Cut Tariffs on Swiss Goods to 15 Percent, Swiss Minister Says

Swiss Economy Minister Guy Parmelin said on November 22 that the United States is expected to lower the additional country specific tariff on Swiss imports from 39 percent to 15 percent, with implementation potentially as soon as early December subject to U.S. administrative steps. The announcement follows a preliminary agreement between the two governments and comes after a period in which elevated U.S. duties had weighed on several Swiss export sectors.

The proposed reduction would cut the tariff rate by 24 percentage points, a decline of roughly 62 percent in the applied surcharge. For exporters of high value Swiss goods such as watches, precision machinery and pharmaceuticals this could materially reduce border costs and restore price competitiveness in the U.S. market relative to European suppliers who have faced lower or zero additional levies. Swiss officials said detailed negotiations will continue and that Bern will seek further exemptions where possible.

The Trump era escalation that raised the tariff to 39 percent significantly disrupted export patterns and supply chains. While Swiss trade flows rebounded in some areas, the higher duties inflated landed costs for U.S. buyers and forced some Swiss firms to adjust pricing, sourcing or market strategies. Restoring a lower tariff would ease those pressures and could prompt near term adjustments in orders, inventories and pricing as firms and buyers reassess margins and distribution plans.

Implementation hinges on administrative action in Washington including tariff schedules and customs procedures. Even if the 15 percent rate takes effect in early December, further negotiation will determine the scope of exemptions, product classifications and how longstanding disputes are resolved. Aligning U.S. treatment of Swiss imports with that accorded to the European Union and other partners would reduce a source of policy uncertainty that has shadowed transatlantic commercial relations since the tariff escalation.

Market implications extend beyond immediate price effects. Lower border costs can support export volumes and revenues for Swiss firms with significant U.S. exposure, while dampening passthrough into consumer prices in the United States for affected goods. For Swiss economic policymakers, the development reduces downside risk to export driven growth and may relieve pressure on sectors that have been lobbying for relief. For Washington, the move could be presented as a recalibration of a policy that had provoked complaints from close allies.

Longer term, the episode underscores the fragility of trade policy and the value for exporters of a stable, rules based environment. Firms may still reassess supply chains to mitigate future political risk, but a rapid reduction to 15 percent would be a meaningful near term restoration of access to the U.S. market for Swiss producers of watches, machinery and pharmaceuticals.