WASHINGTON D.C. – The United States and Switzerland have signed a non-binding memorandum of understanding to significantly reduce US tariffs on Swiss goods from 39% to 15%, the Swiss government announced on Friday, November 14, 2025. The agreement follows a period of strained economic relations and intense lobbying by Swiss corporate executives, raising questions in Washington about the influence of big business on trade policy.

The deal, confirmed by US Trade Representative Jamieson Greer, aims to place Switzerland on equal footing with the European Union in its trade relationship with the US. In return for the tariff reduction, Swiss companies have pledged to invest approximately $200 billion in the United States by the end of 2028. Switzerland will also lower its import duties on a range of American products, including granting duty-free quotas for US beef, bison, and poultry.

The original 39% tariff, imposed by President Donald Trump in August 2025, was among the highest levied against any Western nation and significantly impacted Swiss exporters, particularly in the luxury goods and manufacturing sectors.

Corporate Engagement Under Scrutiny

The agreement was reached shortly after high-level meetings between President Trump and top executives from major Swiss companies. In early November 2025, CEOs from firms including luxury watchmaker Rolex and the Richemont group met with Trump at the White House. This private delegation, which stated it was acting on its own initiative, aimed to underscore the strong economic ties between the two nations and advocate for a resolution to the tariff issue.

The corporate engagement has drawn sharp criticism from some US lawmakers. Senator Elizabeth Warren, a Massachusetts Democrat, accused the White House of prioritizing corporate interests over those of American families facing rising costs. “While prices for American families are going way up because of Trump’s chaotic tariffs, it’s the billionaires and giant corporations cozying up to Trump that get relief,” Warren stated. The White House dismissed these claims as “asinine conspiracy theories.”

Further scrutiny arose from President Trump's interactions with Rolex. The company invited the president to the US Open tennis final in September, where, according to Rolex CEO Jean-Frédéric Dufour, Trump jested about whether the invitation was linked to the tariffs. Dufour has denied that Rolex engaged in any direct negotiations over tariffs, stating such matters are the exclusive purview of government officials.

Implications for Kenya and East Africa

While the US-Switzerland deal does not directly involve Kenya, it serves as a critical case study in the shifting landscape of global trade under the Trump administration. For Kenya, which has faced its own trade uncertainties with the US, the events are a reminder of the potential for abrupt policy changes and the influence of non-state actors in international economic relations.

The Trump administration previously imposed a blanket 10% tariff on imports from many nations, including Kenya, which complicated the benefits the country enjoyed under the African Growth and Opportunity Act (AGOA). AGOA, a cornerstone of US-Africa trade, is set to expire in September 2025, heightening the urgency for Kenya to secure a more permanent and predictable trade framework. Talks for a bilateral Free Trade Agreement (FTA) between the US and Kenya were initiated under the Trump administration in 2020 but have since evolved.

Switzerland is a notable, though not primary, trading partner for Kenya. In 2023, trade volume between the two nations stood at CHF 156 million (approximately KES 24.5 billion). Kenya's main exports to Switzerland are agricultural, including cut flowers, coffee, and tea, totaling $82 million in 2023. Conversely, Kenya imports pharmaceuticals and machinery from Switzerland. A downturn in the Swiss economy resulting from prolonged trade disputes could indirectly affect demand for these Kenyan products.

More broadly, the EAC has recently experienced a trade deficit, partly due to a decline in exports to key markets including the US and Switzerland. The current global environment of trade tensions and tariff volatility creates significant uncertainty for export-dependent economies in the region. The resolution of the US-Swiss dispute, and the manner in which it was achieved, will be closely watched by policymakers in Nairobi and across East Africa as they navigate their own complex trade relationships with global powers.