• Switzerland has proposed a CHF 150-200 billion investment package to offset US tariffs and support American industries
  • The offer comes as Swiss exports to the US face potential 39% tariffs, threatening CHF 10-18 billion in trade and up to 20,000 Swiss jobs
  • Negotiations face tight deadlines with analysts skeptical about breakthrough prospects before August 2025

Swiss President Karin Keller-Sutter and Vice President Guy Parmelin presented US officials with an unprecedented investment package worth approximately $170-200 billion this week, according to people familiar with the negotiations. The proposal represents Switzerland's most aggressive effort yet to counter punishing new US tariffs that threaten to derail one of Europe's most export-dependent economies.

The offer comes in direct response to the 39% tariffs imposed by the US on Swiss imports under President Trump's "Reciprocal Tariffs" policy. While a temporary 10% tariff rate remains in effect, Swiss officials are racing against an August 2025 deadline to secure a permanent solution before the full measures take effect.

"Without a deal, the company would be forced into bankruptcy," said one executive at a major Swiss pharmaceutical firm who requested anonymity due to the sensitivity of ongoing talks. Pharmaceutical giants Novartis and Roche, which account for approximately 60% of Swiss exports to the US, stand to bear the brunt of the tariff impact.

Swiss export volumes to the US are already forecast to decline by 20-30% if the full tariffs take effect, representing a direct hit of CHF 10-18 billion to the Swiss economy. The country's GDP could contract by up to 0.7% in 2025 under the worst-case scenario, according to economic projections reviewed by this publication.

The investment package aims to support US industries and offset the bilateral trade deficit that US officials have cited as justification for the tariffs. Despite being the fourth-largest investor in the US, Switzerland has found itself facing harsher tariff treatment than the European Union, which secured a 15% rate through bloc negotiations.

Efforts to restructure the trade relationship have hit multiple snags, with Swiss companies now actively considering relocating production to the US or EU to evade tariffs. The watchmaking and machinery sectors are particularly vulnerable, with some firms exploring Liechtenstein as a potential production relocation site given its more favorable 15% tariff rate.

Around 10,000-20,000 Swiss jobs are at risk due to export declines, and domestic inflation is projected to rise by 0.5-1% as companies pass higher costs to consumers. The Swiss government has been attempting to coordinate with the EU on a united response, but frustration is mounting over the country's isolated negotiating position.

Most analysts rate the probability of a breakthrough before August as low, citing the short timeframe, US political motivations around reducing domestic drug prices, and Switzerland's limited leverage compared to larger trading blocs. The next days are considered critical for any last-minute compromise that could avert a deeper slide into protectionist trade measures between the two nations.

Correction: An earlier version of this article misstated the temporary tariff rate; it is 10%, not 15%.