The U.S., Switzerland and Liechtenstein have provisionally agreed on a framework under which U.S. duties on Swiss-origin goods would be capped at 15%, down from the up to 39% level imposed earlier this year.
This time it appears to be for real. Swiss officials said the move allows immediate relief for those sectors hardest hit by the higher levies – the watch industry, for which the U.S. was the top export market in 2024, with exports of about CHF 4.37–4.4 billion (approx. $4.72–4.93 billion). This degree of exposure to the tariff cut was particularly important for luxury and precision exporters.
“We will apply our most-favored-nation rate or a tariff no greater than 15% to products originating in Switzerland and Liechtenstein in exchange for Switzerland’s commitment to undertake actions to increase U.S. investment, purchase more U.S. goods, and lower certain Swiss duties on U.S. products and services to create a more balanced and reciprocal trading relationship,” U.S. officials said in a statement regarding the new arrangement.
The U.S. and Switzerland stressed that this is a framework, not a binding treaty; negotiations toward a binding deal to create permanent new arrangements were to get underway immediately, with an eye toward making “significant progress” and potentially closing the deal as soon as the first quarter of 2026.
The U.S. and Swiss authorities signaled the 15% ceiling could come into effect rapidly; Helene Budliger Artieda from Switzerland’s State Secretariat for Economic Affairs said the reduced rate could arise within “days, weeks,” depending on changes in U.S. customs processing.
For exporters of Swiss goods – from watchmakers to precision manufacturers and even jewelers who make high-end custom bracelets – the cut should help stabilize U.S. demand and relieve some price pressure in the interim period while negotiators try to settle on a full agreement. As noted, the framework must still get through the Swiss parliamentary process and may even be subject to public scrutiny before it becomes permanent.
