US President Donald Trump has announced the achievement of a framework trade agreement with Switzerland and Liechtenstein, deeming it a historic milestone. The agreement promises expanded market access for American exporters and is expected to attract hundreds of billions of dollars in investment to the United States, a scale that officials in Bern may still be adjusting to.
As planned, companies in Switzerland and Liechtenstein are set to invest at least $200 billion in the US, with one-third of that amount expected by 2026. Several major corporations, including Roche, Novartis, ABB, and Stadler, have publicly confirmed their intentions. According to Washington, the remaining companies are in the process of finalizing theirs.
The agreement stipulates a collective tariff rate not exceeding 15%, the same level that the US has offered Europe. Bern and Vaduz will eliminate several tariffs on various agricultural and industrial products, ranging from nuts and seafood to chemicals and alcoholic beverages. In return, the US will gain expanded access to sectors such as medical devices, automotive standards, and dairy products.
Trump emphasized that the deal removes longstanding non-tariff barriers that have hindered American goods from entering the Swiss market. This means significantly less bureaucracy and a wealth of new opportunities for US manufacturers.
The agreement also focuses on digital trade and eliminating taxes on digital services. This will simplify operations for American technology companies in Europe. Another goal is to strengthen supply chains and reduce vulnerability to third-country policies.
In 2024, the US goods trade deficit with Switzerland and Liechtenstein reached $38.5 billion. Washington hopes to completely bridge this gap by 2028, which is a formidable challenge, considering the size and complexity of the Swiss economy.
Negotiations are ongoing, and the final version of the agreement is expected by early 2026. In the meantime, all the markets can do is watch and wait. While the promises are substantial, as always, the outcome will ultimately be determined by the details.
