**White House Announces Reciprocal Trade Framework Agreement with Switzerland and Liechtenstein**
*By Brooke Mallory | 3:13 PM Friday, November 14, 2025*
The White House has announced a framework agreement on reciprocal trade with Switzerland and Liechtenstein, significantly reducing U.S. tariffs on Swiss imports from 39 percent to a capped rate of 15 percent. In addition, Swiss firms have pledged $200 billion in investments in the United States by the end of 2028, including $67 billion slated for 2026 alone.
In exchange, Switzerland and Liechtenstein will eliminate tariffs on U.S. industrial products, fish, seafood, nuts, certain fruits, chemicals, and spirits such as whiskey and rum. They will also introduce tariff-rate quotas for American beef (500 tonnes duty-free), bison (1,000 tonnes), and poultry (1,500 tonnes), which will address long-standing non-tariff barriers in agriculture.
### About Liechtenstein and Its Economic Ties with Switzerland
Liechtenstein is a German-speaking principality located between Austria and Switzerland. Known for its wealth, it benefits from a highly developed manufacturing sector, strong financial services industry, and a low-tax, stable economy. The country invests heavily in specialized high-tech manufacturing, including dental instruments and machine engineering, alongside a thriving financial sector.
Switzerland and Liechtenstein maintain a very close relationship. They share a customs and monetary union, allowing open trade borders and the use of the Swiss franc as Liechtenstein’s currency. Switzerland also handles diplomatic and consular affairs on Liechtenstein’s behalf in countries where Liechtenstein lacks representation.
### White House Statement on the Framework
The White House stated:
> “Today, the United States of America, the Swiss Confederation (Switzerland), and the Principality of Liechtenstein (Liechtenstein) (collectively, Participants) express through this Framework their intention to negotiate an Agreement on Fair, Balanced, and Reciprocal Trade (Agreement). Through the Agreement, the Participants intend to create a dynamic and balanced trading relationship on a reciprocal and mutually advantageous basis, with a view toward creating good, high-paying jobs and economic growth in their markets.
> The Participants share a desire to make trade fairer, easier, and more substantial. The Participants further share a desire to foster secure and resilient supply chains and a conducive business environment to attract high-quality and trusted investment.
> Switzerland intends to take action to balance its trade with the United States, including by purchasing U.S. goods, facilitating investment in the United States, and removing tariff and non-tariff barriers for U.S. goods.
> The Participants intend to immediately begin negotiations of the Agreement with the aim to make significant progress, and if possible conclude the Agreement, by the first quarter of 2026, subject to their respective domestic processes.”
The deal, framed under the goals of “fair, balanced, and reciprocal” commerce, was unveiled by President Donald Trump and U.S. Trade Representative Jamieson Greer during a White House briefing, which they described as “another win” in the GOP administration’s aggressive tariff recalibration strategy.
### Why This Deal Is Beneficial for the U.S.
**Unprecedented Market Access:**
The framework provides the largest expansion ever of U.S. exporter access to Swiss markets by eliminating tariffs on American industrial products. It dismantles long-standing non-tariff barriers in agriculture and opens new opportunities for U.S. manufacturers, farmers, ranchers, and producers.
**Reciprocity in Action:**
By capping U.S. tariffs at 15 percent on most Swiss and Liechtenstein goods — down from 39 percent — the agreement enforces balanced trade commitments. These include enhanced digital trade principles and improved government procurement access for U.S. firms, leveling the playing field and boosting exports in key sectors driven by high-value Swiss imports such as precision instruments and medicines. This also supports supply chain security.
The U.S. goods trade deficit with Switzerland and Liechtenstein was $38.5 billion in 2024.
**Pushing Momentum:**
This framework exemplifies a “virtuous cycle” where initial tariffs stimulate further deals with multiple nations. Similar agreements with Argentina, Guatemala, El Salvador, and Ecuador were announced earlier this week, suggesting a ripple effect influencing more countries toward comparable arrangements.
Under the terms, the U.S. will apply the higher of its most-favored-nation (MFN) tariff rates or a flat 15 percent cap on most originating goods from the two nations. Special provisions for pharmaceuticals and semiconductors aim to keep combined duties under 15 percent.
### Investment Surge and Economic Impact
Swiss and Liechtenstein companies — including pharma giants Novartis and Roche — have committed at least $200 billion to U.S. projects by the end of 2028. Targeted sectors include manufacturing and biotech, aiming to offset the U.S.’s $55.7 billion goods trade deficit with Switzerland through July 2025 (up from $38.3 billion in 2024), which is driven by high-value imports such as precision instruments and medicines.
Trade Representative Jamieson Greer praised the pact as a blueprint for correcting trade imbalances while boosting supply chain security. He also highlighted commitments to digital trade principles, including opposition to discriminatory digital services taxes and enhanced government procurement access for U.S. companies.
> “President Trump’s unmatched dealmaking continues to deliver for the American people,” Greer said. “This framework tears down longstanding trade barriers that have held U.S. exporters back and secures billions in new investment on American soil — investment that will generate thousands of good-paying jobs in every state.”
Swiss Federal official Ignazio Cassis echoed the sentiment in Bern, calling the deal a pragmatic solution that safeguards exporters while fostering deeper bilateral ties.
The framework’s tariff caps take immediate effect, with full negotiations targeted for completion by the first quarter of 2026, pending congressional review.
### Economic Outlook and Potential Concerns
Economists forecast $1.5 to $2 billion in annual savings for U.S. importers on Swiss goods, potentially easing prices for consumers on items ranging from luxury watches to medical devices.
This agreement follows similar deals with Latin American nations earlier this week, signaling a growing pattern in the Trump administration’s “framework-first” approach over lengthy free-trade pacts.
However, some critics have cautioned about “potential market flooding.” This worst-case scenario refers to the economic risk that rapid or excessive imports of foreign goods — often at lower prices due to reduced tariffs or new concessions — could overwhelm domestic markets, leading to oversupply, depressed prices, and harm to U.S. producers.
This criticism is common in trade policy debates, where sudden market openings are seen as prioritizing short-term export gains while potentially exposing American industries to unfair competition from subsidized or dumped imports.
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