The United States and Switzerland reached an agreement Friday to slash tariffs on Swiss goods from 39% to 15%.
The deal came after a Thursday meeting between US and Swiss officials and an unusual Oval Office visit last week by high-level Swiss executives meeting with President Trump.
The tariff reduction helps lower costs for exporting Swiss pharmaceuticals, gold, watches, and chocolate to the US.
Trump's administration imposed the 39% tariff on Swiss exports in August, blindsiding a longtime ally. The punishing rate delivered a sharp blow to Switzerland's economy by significantly raising export costs.
The tariff was one of the highest rates set for any country. Administration officials said it responded to a substantial US trade deficit with Switzerland.
The 15% rate now matches the tariff charged on European Union goods following their July trade deal.
Swiss companies committed to making $200 billion in US investments by 2028, the end of Trump's presidency, according to Swiss economy minister Guy Parmelin.
At least $67 billion of that investment will occur in 2026, the White House said. Swiss businesses will also set up apprenticeships and training programs in the US.
US Trade Representative Jamieson Greer said on CNBC Friday that Switzerland will locate new manufacturing in the US for pharmaceuticals, railway equipment, and gold smelting.
The US agreed to cap tariffs for Swiss-made pharmaceuticals and semiconductors at 15%, Parmelin said in a briefing in Bern.
Switzerland made commitments to balance its trade with the US, according to the White House.
The Swiss government posted on social media: "Thanks to President Trump for the constructive engagement."
Friday's news followed a flurry of trade deals Thursday with Argentina, Guatemala, El Salvador, and Ecuador. The administration is also preparing to announce new tariff exemptions aimed at lowering high prices frustrating US consumers.
Switzerland cut a deal to slash Trump's 39% tariff to 15% by promising $200 billion in US investments and new manufacturing facilities, following the playbook of other countries making major commitments to reduce trade tensions. The agreement came after Swiss executives made an unusual Oval Office visit, showing how direct engagement with Trump can quickly resolve tariff disputes.