On November 14, Eastern Time, US President Trump signed an executive order that, effective November 13, Eastern Time, would no longer impose tariffs on certain agricultural products . The so-called "reciprocal tariffs" were imposed. The White House stated that the adjustment to the scope of "reciprocal tariffs" was mainly due to the progress of negotiations between the United States and its trading partners, as well as current domestic demand and production capacity for certain products in the United States.
Meanwhile, new developments have emerged in trade negotiations between the United States and Switzerland. According to a statement released on the White House website on the 14th, the U.S. tariff rate on imports from Switzerland will be reduced from the current 39% to 15%. In exchange, Swiss companies have pledged to invest $200 billion (approximately 1.42 trillion yuan) in the United States by the end of 2028.
Tariffs reduced to 15%
According to Xinhua News Agency, the White House website released a joint statement on the framework agreement for trade negotiations between the United States and Switzerland on the 14th. According to the statement, the tariff rate imposed by the United States on products imported from Switzerland will be reduced from the current 39% to 15%.
Swiss Federal Councillor and Minister for Economic Affairs and Education, Pamela Palmer, led a delegation to Washington on the 13th to hold trade talks with U.S. Trade Representative Greer. As part of the framework agreement, Swiss companies pledged to invest $200 billion in the U.S., with $67 billion of that investment scheduled for 2026.
Both countries stated that they will accelerate the trade agreement negotiation process and plan to finalize the negotiations by early 2026.
Swiss Federal Councillor and Minister for Economic Affairs, Education and Research, Pamela Palmer, said when announcing the agreement: "This trade agreement puts Switzerland on par with the EU, reducing tariffs from 39% to 15%, which will affect about 40% of Switzerland's exports."
Pamela added, "Of course, we would prefer that the $200 billion be invested in Switzerland. Therefore, the Federal Council is also working to explore ways to further reduce the operating costs of domestic companies."
U.S. Trade Representative Jamison Greer previously stated that the White House would release details later on Friday. Greer also revealed that Switzerland had pledged to purchase more Boeing aircraft. The company's civilian aircraft.
Helena Boudelg Atida, head of the Swiss National Economic Secretariat, claimed that the lower tariff rate would take effect "within days or weeks," pending the completion of technical adjustments by the U.S. Customs system.
She further stated that the majority of Swiss investment in the US will come from the pharmaceutical and life sciences sectors, but did not provide specific company information.
Pharmaceuticals are reportedly Switzerland's largest export sector to the US. Greer stated, "The agreement will encourage Switzerland to relocate a significant amount of manufacturing to the US—pharmaceuticals, gold refining, railway equipment—and we are very excited about this."
The agreement also sets a 15% tariff ceiling for Swiss pharmaceutical companies (including Roche and Novartis) to protect them from the impact of Trump's upcoming Section 232 "national security tariffs," which could impose tariffs of up to 100% on some patented drugs.
Palmran emphasized that the 15% cap also applies to other Section 232 sectors, including semiconductors. Switzerland thus achieved equal treatment with the EU, completely eliminating the risk of higher industry tariffs.
In a statement, the Swiss government said the tariff agreement covers neighboring Liechtenstein and will reduce Swiss import tariffs on U.S. industrial goods, fish, seafood, and agricultural products that Switzerland considers "non-sensitive."
Data shows that Switzerland's trade surplus with the United States was $38.3 billion in 2024; it expanded to $55.7 billion in the first seven months of 2025, mainly due to the large amount of goods stockpiled by the United States in the first quarter of this year before Trump implemented "reciprocal tariffs" in early April.
Swiss industry welcomed the agreement, saying it would put them on a level playing field with their EU competitors in the US market.
Nicola Tettamanti, president of Swissmechanic, the Swiss Association of Small and Medium-Sized Manufacturers, said: "This is a major benefit for the industrial sector, which has been subject to a 39% tariff since August 1. For the first time, we have the same conditions as our European competitors in the US market."
Hans Gersbach, director of the Swiss economic research institute KOF, stated, "This significantly alleviates tariff pressure, but Switzerland still faces additional economic burdens and risks." He predicts that industries exporting to the US, such as machinery, precision instruments, watches, and food, will benefit the most.
KOF predicts that Switzerland's economic growth will be 0.9% in 2026, but with tariff reductions, this growth rate may exceed 1%.
The Swiss Association of Mechanical and Electrical Engineers stated on the 14th that the reduction of US tariffs on Swiss products to 15% merely eliminates the significant disadvantage of Swiss manufacturers compared to EU or Japanese manufacturers, and by no means means the alarm is over.
Trump signed
On November 14 local time, US President Trump signed an executive order to stop imposing so-called "reciprocal tariffs" on some agricultural products , effective November 13 Eastern Time.
According to a document released by the White House, agricultural products that will no longer be subject to "reciprocal tariffs" include coffee, tea, tropical fruits and juices, cocoa, spices, bananas, citrus fruits, tomatoes, beef, and some fertilizer products.
The White House stated that the adjustment to the scope of "reciprocal tariffs" was primarily based on the progress of negotiations between the United States and its trading partners, as well as current domestic demand and production capacity for certain products.
However, several US media outlets reported that rising price pressures were a significant reason for the government to adjust tariffs. Some analysts believe that the Republican Party's recent losses in several local elections indicate that voters are expressing their dissatisfaction with rising prices. Furthermore, the record-breaking federal government shutdown is expected to weaken US economic growth in the fourth quarter, which is also a major factor prompting the government to adjust its tariff policy.
Data from the U.S. Department of Labor shows that the U.S. Consumer Price Index (CPI) rose steadily from 2.3% in April to 3% in September. Specifically, prices for beef, coffee, and tea increased by more than 10% year-on-year in September.
Last week, the United States reached a framework agreement with some Latin American countries, including Argentina, Ecuador, El Salvador, and Guatemala, which included tariff reductions on some coffee and fruits.
Coffee is practically a necessity in American life, exhibiting high customer loyalty. In September, influenced by factors such as high tariffs, coffee prices saw the highest increase among all goods and services tracked by the U.S. Consumer Price Index.
Earlier this month, the U.S. Supreme Court began debating a lawsuit filed by the White House against imposing tariffs across the board. The case is expected to have a protracted trial lasting several months and the final verdict is anticipated to have a profound impact on international trade and the overall U.S. finances, involving a large-scale and complex tax refund process.
(Source: Securities Times)
