The United States and Switzerland inched significantly closer to finalising a trade agreement aimed at easing President Donald Trump’s steep tariffs on Swiss goods and narrowing Switzerland’s trade surplus with the US. The development follows high-level discussions held in Washington on Thursday, bringing both sides to what officials described as the final stages of negotiation.
The talks, led by Swiss Economy Minister Guy Parmelin and US Trade Representative Jamieson Greer, focused on reducing the 39% tariffs imposed by the Trump administration on a range of Swiss imports. These tariffs have long been viewed by Switzerland as punitive and economically damaging, particularly for sectors dependent on stable export channels to the American market.
After the meeting, Parmelin said the two delegations “had a very good talk”, adding that both sides were able to “clarify virtually everything”, signalling that the remaining gaps in the agreement are minimal.
Background of tariff tensions
The Trump administration introduced the 39% tariffs as part of its broader protectionist trade policy, aimed at reducing US trade deficits with several countries. Switzerland, despite being a smaller trading partner compared to major economies like China or the EU, saw several of its key export categories affected.
Swiss officials have repeatedly argued that the tariffs distort long-standing bilateral economic ties and place undue strain on Swiss industries, including machinery, precision instruments and pharmaceuticals.
The US, on the other hand, has sought measures to address what it considers an imbalanced trade relationship. The proposed deal is expected to incorporate Swiss commitments to address the surplus through increased US market access and regulatory cooperation.
Deal expected to boost economic ties
Officials on both sides expressed optimism that the agreement would benefit businesses and strengthen economic relations. For Swiss exporters, tariff reductions would bring immediate relief, allowing them to restore competitiveness in the US market. For Washington, the deal is expected to support American exporters and reduce friction in bilateral ties.
Diplomatic observers noted that the progress marks a rare moment of alignment for the Trump administration amid ongoing global trade disputes.
Next steps
Final details are expected to be ironed out in the coming weeks. While neither side provided a timeline, the positive tone from both delegations suggests the agreement may be concluded sooner rather than later. The deal will still require domestic-level approvals, including reviews from trade bodies and, in the case of the US, congressional oversight.