Economy March 13, 2026

Switzerland Holds to Mandate in U.S. Trade Talks as Washington Opens New Probes

Economy minister says formal negotiations proceed while the U.S. launches investigations into excess capacity and forced labour allegations

By Nina Shah
Switzerland Holds to Mandate in U.S. Trade Talks as Washington Opens New Probes

Switzerland will continue to negotiate under its existing mandate to finalise a tariff agreement with the United States, Economy Minister Guy Parmelin said, as Washington begins trade investigations into excess industrial capacity and forced labour claims affecting 16 trading partners, including Switzerland. Bern is working to formalise a tariff deal reached last November that cut duties to 15% from a prior 39%, with talks ongoing under U.S. pressure to conclude by the end of March.

Key Points

  • Switzerland is keeping to its existing mandate for negotiations with the United States to formalise a tariff deal agreed in November.
  • The U.S. has launched trade investigations into excess industrial capacity in 16 trading partners, and into forced labour allegations - Switzerland is included in both probes.
  • Swiss officials will consult with other affected countries on responses while continuing bilateral talks; sectors most directly affected include manufacturing, industrial exporters, and trade-dependent businesses.

Switzerland is maintaining its current negotiating mandate in discussions with the United States to finalise a tariff agreement struck last year, Economy Minister Guy Parmelin said on Friday. His remarks followed U.S. announcements this week that it has opened trade probes into excess industrial capacity among 16 major trading partners - a list that includes Switzerland - and into allegations of forced labour.

Speaking at a press conference, Parmelin said Switzerland would consult with other affected countries to coordinate responses to the U.S. investigations. "And we will most certainly also consult with these countries to see how to respond to the United States," he told reporters.

The current negotiation effort aims to formalise a preliminary deal reached in November that reduced U.S. duties on Swiss imports from a peak of 39% to 15%, aligning Switzerland's tariff rate with that of the European Union. The higher 39% tariff had been imposed in August under then-U.S. President Donald Trump and made Switzerland the European country subject to the steepest U.S. tariffs at that time.

Since the November arrangement, Swiss and U.S. officials have engaged in talks to turn that initial understanding into a formal agreement. According to Parmelin, who is also Switzerland's president for 2026, discussions are still under way: "The negotiations and discussions are continuing," he said.

Washington has been pressing for the agreement to be finalised by the end of March, and the Swiss government has said it is negotiating within the parameters of its existing mandate. The U.S. trade investigations announced on Wednesday introduce a parallel development to those bilateral talks, focusing on structural issues the United States has signalled are of concern across multiple trading partners.

The intersecting tracks - bilateral talks to formalise last year's tariff reduction and separate U.S. probes into industrial capacity and forced labour allegations - frame the immediate policy environment for Switzerland's trade negotiators. Parmelin's comments underscore Bern's intention to proceed under the direction already authorised by Swiss policymakers while engaging other affected countries on how best to respond to the new U.S. inquiries.


Context and next steps

Switzerland's officials will continue bilateral negotiations with the United States to convert the November tariff reduction into a formal agreement. At the same time, Swiss authorities plan to consult with other trading partners named in the U.S. investigations to coordinate responses. The outcome of both tracks - the formalisation of the tariff deal and any developments stemming from the U.S. probes - will influence Swiss exporters and industrial sectors connected to transatlantic trade.

Risks

  • The U.S. trade investigations into excess industrial capacity could create additional uncertainty for Swiss industrial exporters and manufacturing firms.
  • Allegations of forced labour prompting inquiry could complicate negotiations and affect sectors tied to global supply chains and trade flows.

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