OAN Staff Brooke Mallory
3:13 PM – Friday, November 14, 2025
The White House has announced a framework agreement on reciprocal trade with Switzerland and Liechtenstein, capping U.S. tariffs on Swiss imports at 15 percent — down from the recently imposed 39 percent rate — and securing a $200 billion investment pledge from Swiss firms by the end of 2028.
$67 billion is slated for 2026 alone, Swiss firms noted.
In exchange, Switzerland and Liechtenstein will eliminate tariffs on U.S. industrial products, fish, seafood, nuts, certain fruits, chemicals, and spirits like whiskey and rum. They will also introduce tariff-rate quotas for American beef (500 tonnes duty-free), bison (1,000 tonnes), and poultry (1,500 tonnes), addressing long-standing non-tariff barriers in agriculture.
Liechtenstein is a German-speaking principality between Austria and Switzerland. It is wealthy due to its highly developed manufacturing sector, strong financial services industry, and a low-tax, stable economy. The country invests heavily in specialized, high-tech manufacturing, including dental instruments and machine engineering, and has a thriving financial sector.
The two countries have a very close relationship as they share a customs and monetary union, meaning they have open borders for trade and use the Swiss franc as Liechtenstein’s currency. Switzerland also handles some diplomatic and consular affairs for Liechtenstein in countries where Liechtenstein does not have representation.
The White House announced: “Today, the United States of America, the Swiss Confederation (Switzerland), and the Principality of Liechtenstein (Liechtenstein) (collectively, Participants) express through this Framework their intention to negotiate an Agreement on Fair, Balanced, and Reciprocal Trade (Agreement). Through the Agreement, the Participants intend to create a dynamic and balanced trading relationship on a reciprocal and mutually advantageous basis, with a view toward creating good, high-paying jobs and economic growth in their markets. The Participants share a desire to make trade fairer, easier, and more substantial. The Participants further share a desire to foster secure and resilient supply chains and a conducive business environment to attract high-quality and trusted investment. Switzerland intends to take action to balance its trade with the United States, including by purchasing U.S. goods, facilitating investment in the United States, and removing tariff and non-tariff barriers for U.S. goods. The Participants intend to immediately begin negotiations of the Agreement with the aim to make significant progress, and if possible conclude the Agreement, by the first quarter of 2026, subject to their respective domestic processes.”
The deal, steeping toward “fair, balanced, and reciprocal” commerce, was also unveiled by President Donald Trump and U.S. Trade Representative Jamieson Greer during a White House briefing — which they highlighted as “another win” in the GOP administration’s aggressive tariff recalibration strategy.
Why This Deal Is Beneficial For The U.S.
- Unprecedented Market Access: The framework secures the largest expansion ever of U.S. exporter access to Swiss markets by eliminating tariffs on American industrial products. It dismantles long-standing non-tariff barriers in agriculture while creating new opportunities for U.S. manufacturers, farmers, ranchers, and producers.
- Reciprocity in Action: In exchange for capping U.S. tariffs at 15% on most Swiss and Liechtenstein goods (down from 39%), the deal enforces balanced trade commitments, including enhanced digital trade principles and government procurement access for U.S. firms. This levels the playing field and boosts U.S. exports in key sectors — driven by high-value Swiss imports like precision instruments and medicines — while fostering supply chain security. The U.S. goods trade deficit with Switzerland and Liechtenstein was $38.5 billion in 2024.
- Pushing Momentum: It exemplifies a “virtuous cycle” where initial tariffs spur deals with multiple nations — following similar frameworks with Argentina, Guatemala, El Salvador, and Ecuador earlier this week. New agreements between the United States and other countries typically create a ripple effect, influencing even more nations to pursue comparable arrangements as well.
Under the terms, detailed in a joint White House statement, the U.S. will apply the higher of its most-favored-nation (MFN) tariff rates or a flat 15 percent cap on most originating goods from the two nations, with special provisions for pharmaceuticals and semiconductors to keep combined duties under 15 percent.
Another cornerstone of the deal is the investment surge, as Swiss and Liechtenstein companies, including giants like Novartis and Roche in pharma, have committed at least $200 billion to U.S. projects by the end of 2028.
This targets sectors like manufacturing and biotech, aiming to offset the U.S.’s $55.7 billion goods trade deficit with Switzerland through July 2025, up from $38.3 billion in 2024, driven by high-value imports like precision instruments and medicines.
Greer praised the pact as a blueprint for correcting imbalances while boosting supply chain security. He also highlighted commitments to digital trade principles, including opposition to discriminatory digital services taxes and enhanced government procurement access for U.S. companies.
“President Trump’s unmatched dealmaking continues to deliver for the American people,” Greer said in a statement. “This framework tears down longstanding trade barriers that have held U.S. exporters back and secures billions in new investment on American soil—investment that will generate thousands of good-paying jobs in every state.”
Swiss Federal official Ignazio Cassis echoed the sentiment in Bern, calling it a pragmatic solution that safeguards our exporters while fostering deeper ties. Liechtenstein’s government, via a joint statement, emphasized the deal’s role in stabilizing regional trade during global uncertainties.
The framework takes immediate effect for tariff caps, with full negotiations targeted for completion by Q1 2026, pending congressional review. Economists forecast $1.5–2 billion in annual savings for U.S. importers on Swiss goods, potentially easing prices for consumers on everything from luxury watches to medical devices.
This follows similar deals with Latin American nations earlier this week, signaling a pattern in Trump’s “framework-first” approach over lengthy free-trade pacts. However, certain critics have also warned of “potential market flooding.”
“Potential market flooding,” as a worst-case scenario, refers to the economic risk that rapid or excessive imports of foreign goods, often at lower prices due to reduced tariffs or new trade concessions, could overwhelm domestic markets, leading to oversupply, depressed prices, and harm to local producers. This is a common critique in trade policy debates, where sudden market openings are seen as prioritizing quick U.S. export gains while exposing American industries to unfair competition from subsidized or dumped imports.
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