On 14 November 2025, Switzerland, Liechtenstein, and the United States announced a framework to negotiate an Agreement on Fair, Balanced, and Reciprocal Trade (see joint statement here and press release of Swiss government here, see fact sheet here). This development brings long-awaited relief to Swiss market participants after the steep 39% tariffs introduced on 1 August 2025 (Swiss national day) sent shock waves through the Swiss economy. Under the framework, the United States will reduce these tariffs to 15%, aligning Switzerland and Liechtenstein with the treatment given to the European Union in exchange for various concessions and commitments made by Switzerland and Liechtenstein. This move comes a week after President Trump hosted a gathering of Swiss business leaders from the luxury, freight, commodities and investment sector.
“This framework tears down longstanding trade barriers and secures billions in new investment on American soil—investment that will generate thousands of good-paying jobs,” said Ambassador Greer in his statement on 14 November 2025.
Despite the understandable feelings of relief that greeted the announcement, this is only the beginning of a drawn out negotiation process for the Swiss government. The framework is non-binding and will require detailed negotiations to ensure express coverage of products and sectors of Swiss economic interest, parliamentary approval, and possibly a public vote in Switzerland. Questions remain over sensitive issues such as US meat imports under tariff quotas or motor vehicle safety standards, which could spark debate. For now, the $200 billion Swiss investment pledge, a third of which already being expected for 2026, signals strong intent, but turning this framework into a final agreement will take time and careful compromise. Most importantly, the Swiss government cannot legally bind private investors and will be under pressure to eliminate the goods trade balance deficit by 2028.
1. In short: the facts
- Non-binding MoU: The parties effectively signed a non-binding memorandum of understanding to guide negotiations toward a respective trade agreement by the first quarter of 2026.
- Tariff Reductions: The United States will cap cumulative reciprocal tariffs at 15%, while Switzerland will eliminate duties on a range of US industrial goods, including chemicals, and selected agricultural products, including seafood. For other US exports, Switzerland will grant the US duty-free bilateral tariff quotas on selected US agricultural products: 500 tons for beef, 1,000 tons for bison meat, and 1,500 tons for poultry meat.
- Investment Commitments: Swiss and Liechtenstein companies promise to invest at least $200 billion in the United States by 2028, with $67 billion already being expected for 2026. These investments are intended to create thousands of jobs across sectors such as pharmaceuticals, medical devices, aerospace, construction, machinery, advanced manufacturing, gold manufacturing, and energy infrastructure.
- Workforce Development: Swiss and Liechtenstein enterprises will support US workforce training through Registered Apprenticeships and other programs.
2. The Details of the Framework
The memorandum of understanding sets out five key areas which will be the focus of the upcoming negotiations for an Agreement on Fair, Balanced, and Reciprocal Trade:
- Investment, Commercial Considerations, and Opportunities
- Switzerland pledges to invest at least $200 billion in the United States over five years, creating both manufacturing and R&D jobs, while Liechtenstein targets $300 million in investments and a 50% increase in US job creation. One-third of these investments should already be completed by 2026. The United States will monitor progress and may adjust tariffs again based on these commitments.
- Both sides aim to foster training programs, including registered apprenticeships programs, and cooperate on addressing trade distortions from subsidies or state-owned enterprises alike.
- The overarching goal is stated to be the creation of an environment that promotes cross-border investment and job growth.
- Tariffs
- The United States will apply the same tariff treatment to Switzerland and Liechtenstein, capping cumulative reciprocal tariffs at 15%.
- Switzerland and Liechtenstein will remove duties on all US industrial goods and certain agricultural products, including seafood, while granting tariff-rate quotas for others, namely for US meet.
- The United States intends to ensure that the most-favored-nation (MFN) tariff rate and the tariff imposed pursuant to Section 232 of the Trade Expansion Act of 1962 (Section 232) do not exceed 15% for originating pharmaceutical goods and semiconductors of Switzerland and Liechtenstein. No other products are expressly mentioned.
- Both sides commit to cooperate on preventing transshipment and circumvention practices.
- Non-Tariff Barriers and Related Matters
- Both countries will treat each other’s conformity assessment bodies equally, including accreditation, licensing, and approval processes. They will further apply WTO principles for international standards and Switzerland intends to work with the United States to facilitate the recognition of Federal Motor Vehicle Safety Standards.
- The parties intend to advance cooperation in mutually agreed strategic sectors, including medical devices. Switzerland intends to facilitate the acceptance of medical devices cleared or approved by the US Food and Drug Administration.
- Switzerland will work with the United States to ease restrictions on poultry and streamline sanitary requirements for beef, bison, and dairy products.
- All commitments will cover intellectual property protection and fair treatment of geographical indications, plus expanded access for service suppliers. Cooperation will also address forced labour and child labour in supply chains, while also maintaining strong environmental protections.
- The parties aim for transparent regulatory practices, fair procurement under WTO rules, and digitalized customs processes for paperless trade.
- Digital Trade and Technology
- Switzerland and Liechtenstein will continue to refrain from imposing digital services taxes.
- The parties aim to enable trusted cross-border data flows and address data localization requirements. They will also explore mechanisms to align privacy frameworks for secure data transfers.
- Economic Security
- The parties will strengthen cooperation on economic security and address non-market policies of third countries.
- They will enhance enforcement of trade sanctions and US export controls through closer coordination. In this context it is noteworthy that OFAC and SECO already agreed on a memorandum of understanding on cooperation in these areas on 16 May 2025.
- Switzerland and Liechtenstein will work with the US on inbound investment reviews for national security. Switzerland currently still has no foreign investment review regime but is about to introduce one.
- Joint efforts will focus on securing and improving resilience in critical supply chains by addressing third-country non-market policies. In particular, Switzerland and Liechtenstein are to address loopholes allowing non-Government Procurement Agreement and Free Trade Agreement parties access to their procurement markets.
Next Steps: The announced framework provides an outline toward the intended agreement. However, many details remain to be determined pending the negotiation of such agreement, including the precise scope, timing, the specifics of the announced investments, and the mechanisms for regulatory cooperation. We will continue to monitor and report on developments affecting the economic relationship between Switzerland and the United States.
