Switzerland Pledges $200 Billion Investment for U.S. Trade Deal

The Swiss government approved a draft negotiating mandate on December 5, 2025, to implement a trade agreement with the United States. The deal aims to reduce average U.S. levies on Swiss industrial exports from 39% to 15%. In exchange, Swiss companies intend to invest at least $200 billion in the U.S. over the next five years. As part of the agreement, Switzerland will refrain from introducing a digital services tax and will not levy customs duties on electronic transmissions.

A survey by the business association economiesuisse reveals that nearly one-third of firms intend to increase investments outside Switzerland to mitigate tariff impacts. UBS warned that if the pharmaceutical sector relocates all U.S.-bound production, cumulative Swiss economic growth over five years could drop from 10% to 7.7%. Rudolf Minsch of economiesuisse argued that these investments help secure domestic jobs.

Parallel to trade talks, the federal procurement agency Armasuisse confirmed a September 29 contract with Lockheed Martin for 36 F-35 fighter jets. The first eight aircraft are currently being tested in the U.S. and are expected to arrive between 2027 and 2029. Defense Minister Martin Pfister warned that inflation and material costs could lead to budget overruns of up to CHF 1.3 billion beyond the CHF 6 billion limit approved by voters in 2020.