Switzerland to shift pharma, metals, and rail production to the U.S. under new agreement

The United States and Switzerland have finalized a tariff agreement that drops import duties from a punishing 39% to 15%, according to CNBC.

This comes after months of tense negotiations that started back in April, when the White House under President Donald Trump first threatened heavy levies after Switzerland’s initial talks with U.S. officials fell apart.

The new deal brings Swiss tariffs in line with those charged on European Union goods, ending a dispute that had been straining an already trade-dependent Swiss economy.

U.S. Trade Representative Jamieson Greer confirmed on Friday morning that the two countries “have essentially reached a deal.”

He told CNBC’s “Squawk Box” that the breakthrough includes major commitments from Swiss manufacturers to move production directly into the U.S.

“They’re going to send a lot of manufacturing here to the United States; pharmaceuticals, gold smelting, railway equipment,” Jamieson said, adding that the change will benefit American factories. Additional details will be published on the White House website later today.

The Swiss government also posted about the agreement on X, saying the full announcement will be made at 4 p.m. local time. That’s where officials are expected to outline how the country plans to balance trade between the two economies going forward.

But the real meat of the deal is in exchange for lower tariffs, Switzerland will begin producing many of its high-export goods, like pharmaceuticals and precious metals, on U.S. soil, helping reduce the trade imbalance that triggered the dispute in the first place.

Roche commits $50B as part of deal to ease trade surplus

Jamieson said the Trump administration will still “retain a tariff” because the White House wants to keep pressure on countries with large surpluses.

“We have to get the trade deficit under control,” he said. The strategy is to allow easier access only if the partner country actively helps fix the imbalance. In this case, Switzerland is agreeing to build inside the U.S. instead of just shipping goods in.

One example he pointed to was Roche, the Swiss pharmaceutical heavyweight, which earlier in the year pledged to invest $50 billion into U.S. operations. That move was viewed as a signal that Switzerland was ready to cooperate before tariffs choked its export machine completely.

The 39% tariff, announced by Donald Trump in July, kicked in after a Swiss delegation failed to reach a compromise during last-ditch talks in Washington.

That penalty quickly became one of the highest rates imposed by the administration on any individual country. The blow landed hard.

Last month, Swiss officials downgraded their economic growth forecast for 2026, blaming the “heavy burden” of the U.S. tariffs.

Switzerland’s biggest exports—watches, pharmaceuticals, and precious metals—had all taken a hit. Other industries like luxury goods, chocolate, and skincare also felt the squeeze. But Friday’s deal could bring some breathing room, even if tariffs stay partially in place.

And the market moved. Following the news, the Swiss franc jumped 0.4% against the U.S. dollar, signaling cautious optimism.

Whether the new manufacturing plans materialize fast enough to prevent more damage remains to be seen. But for now, both sides have a deal, and Switzerland gets to breathe… slightly.

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