The announcement of the reduction of US tariffs to 15 percent is causing discontent in Switzerland.

The Swiss government announced in a press release on Friday that Switzerland and the USA, together with Liechtenstein, have concluded a letter of intent: "On this basis, the USA will reduce country-specific additional tariffs to 15 percent." This would put Switzerland on an equal footing with the EU in terms of tariffs.

Discussions about Switzerland's reciprocal obligations

In return, Switzerland will lower import tariffs on a range of US products. These include all industrial products, fish and seafood, and, from Switzerland's perspective, non-sensitive US agricultural products. Furthermore, Swiss companies are expected to generate $200 billion in direct investment in the US by the end of 2028.

The agreement also includes the partial or complete elimination of tariffs on US goods. Furthermore, it is intended to address trade barriers such as the non-recognition of US safety standards for vehicles and the ban on chlorine-treated meat.

It remains unclear who decided on the amount and nature of these concessions. Federal Councillor Guy Parmelin emphasized that no concessions had been made to the USA in this regard. "I can assure you that the Federal Council resolutely defends Switzerland's interests and will continue to do so in the future." In an interview with the Swiss newspaper Tages-Anzeiger, he stressed: "We have not sold our soul to the devil."„

State Secretary Budliger Artieda, on the other hand, says it was "a unilateral process initiated by the USA" and that the USA had set the consideration for the tariff reduction at 15 percent: "Switzerland could not decide that."„

The letter of intent, the so-called „Joint Statement“, The agreement is not legally binding, but forms the basis for upcoming negotiations on a binding agreement with the USA. The implementation date will then be coordinated with the USA to ensure a simultaneous reduction in tariffs, the Federal Council announced on Friday.

The Tages-Anzeiger reports that there is an "American factsheet" stating that an agreement must be negotiated by the beginning of 2026. "The Swiss parliament will subsequently have to approve this agreement – otherwise there will be no deal," the Tages-Anzeiger continues.

The Swiss watch industry is involved in the customs deal.

Since the beginning of August, a tariff of 39 percent has applied to exports of products from Switzerland to the USA. Just recently, a Swiss business delegation visits US President Donald Trump in the Oval Office, which also included prominent representatives of the Swiss watch industry. 

A few days after the meeting, photos of the president's desk in the Oval Office showed a gold Rolex clock and an engraved gold bar. The White House later confirmed the two gifts, according to the BBC. Whether this contributed to the current letter of intent remains speculation, as details of the meeting have not been released.

Federal Councillor Parmelin and Federal President Keller-Sutter traveled to Washington in September but were unable to secure a meeting with Trump. During their second visit last week, Parmelin negotiated the non-binding 15 percent trade deal with Trade Representative Greer.