Switzerland is nearing a breakthrough agreement with Washington to lower US tariffs on Swiss exports to about 15%, following a direct intervention by major Swiss corporations that helped break months of diplomatic deadlock.
The move comes after US President Donald Trump imposed a steep 39% tariff on most Swiss goods in August, the highest levies placed on any developed economy. The new agreement would align Switzerland’s tariff rate with that of the European Union, whose exports to the US face a 15% rate.
Business Leaders Take Charge
Facing growing financial strain, top Swiss companies including Rolex, Richemont, Mercuria, Partners Group, MSC, and MKS PAMP shifted from traditional lobbying to direct negotiations with the Trump administration. Executives met with the president at the White House last week, emphasizing Switzerland’s long-standing trade and investment ties with the US.
Trump later confirmed the talks, saying Washington was “working on a deal to get the tariffs a little lower,” while noting the $39 billion US trade deficit with Switzerland as the justification for the original tariffs. “We hit Switzerland very hard,” he said, “but we want Switzerland to remain successful.”
Government and Industry Collaboration
Swiss officials, led initially by President and Finance Minister Karin Keller-Sutter, had expected a compromise deal at around 10% earlier in the summer before Washington unexpectedly raised the rate to 39%. The setback prompted Economy Minister Guy Parmelin, who will assume the presidency next year, to take charge of the negotiations.
Behind the scenes, Helene Budliger Artieda, head of Switzerland’s SECO economic policy office, has been instrumental, making several trips to Washington to sustain dialogue. Swiss business engagement, however, has proven decisive in reviving momentum.
Diplomatic Momentum and Potential Timeline
Analysts suggest that Switzerland’s corporate-led diplomacy plays to the nation’s strengths. “It looks like CEOs can cut through better than federal councillors,” said Simon Evenett, professor of geopolitics at IMD Business School in Lausanne. “A deal is still more likely next year, but this is a positive sign.”
Negotiators close to the talks said a final deal could be announced within weeks, though some cautioned the timeline could extend further. Others hinted that an official announcement may coincide with the World Economic Forum in Davos in January, where Trump is expected to attend.
A Renewed Bilateral Relationship
Newly appointed US Ambassador to Switzerland Callista Gingrich, wife of former US House Speaker Newt Gingrich, is also expected to add fresh impetus to the talks. The Swiss-American Chamber of Commerce described the recent meeting as “complementary” to official government efforts.
Switzerland has already abolished all industrial tariffs on imports, and the US remains its largest export market for high-value goods including watches, machinery, and chocolate. With exports making up more than 70% of Swiss GDP, the outcome of these negotiations could significantly shape the country’s trade trajectory in 2026 and beyond.
