Switzerland debates 13th pension funding as U.S. tariff deal eases trade tensions
Switzerland's political scene is buzzing with talks about financing the 13th AHV pension and a recent tariff deal with the U.S. The political forum was set to explore funding the AHV, while a tariff reduction has been agreed upon in principle.
The 13th AHV pension, an initiative spearheaded by the left, is yet to have concrete funding proposals. Three models are on the table: increased payroll contributions, a VAT hike, or a mix of both. The Social Democratic (SP) councilor of states favors a blended approach, but negotiations are ongoing. As of November 2025, no final decision has been made, with parliament set to continue reconciliation in 2026, and the first payment scheduled for December 2026.
Meanwhile, the tariff deal between Switzerland and the U.S. has reduced duties on Swiss goods from 39% to 15%. This cut, although welcomed, is merely a joint declaration of intent. Swiss business leaders met with U.S. President Donald Trump before the deal was struck, with Switzerland pledging $200 billion in U.S. investments in exchange for the tariff reduction.
The 13th AHV pension funding remains a work in progress, with parliament yet to finalize a financing model. The tariff deal with the U.S., while a relief, is still subject to further details and implementation.
