Swiss exports are facing a significant downturn, particularly to the United States, as the impact of recently imposed tariffs becomes increasingly apparent. Martin Hirzel, president of Swissmem, the association of the Swiss mechanical, electrical and metal industries, described the situation as an epochal shift
for Swiss industry, citing growing protectionist tendencies globally. The decline in business with the US is particularly concerning.
According to Hirzel, Swiss exports to the US decreased by 18% between October and December . This follows the implementation of 39% tariffs on Swiss goods by the US in , a move justified by President Donald Trump as a response to the US trade deficit with Switzerland. While certain goods, including pharmaceutical products and gold, were exempted, the broader impact on Swiss exporters has been substantial.
The initial shock of the tariffs was reflected in a 22.1% drop in exports to the US in , falling to 3.1 billion Swiss francs ($3.9 billion) from nearly 4 billion francs in . This decline brought exports to the US to their lowest level since the end of , according to Swiss government data. However, recent figures indicate a more complex picture, with a surprising rebound in September.
Despite the tariffs, Swiss exports to the US actually increased by 43% in . This surge, however, appears to be driven largely by the chemical and pharmaceutical industries, with a significant increase in the value of exports despite a decrease in the quantity shipped. The Federal Office for Customs and Border Security (FOCBS) attributes this to individual shipments containing high-value goods. Experts caution that monthly figures are difficult to interpret at the moment
and may not reflect a sustained trend.
The impact of the tariffs isn’t uniform across all sectors. The Swiss watch industry, a significant contributor to the nation’s exports, has also been affected. The Federation of the Swiss Watch Industry (FH) reported a 3.1% decline in exports to the US in , reaching CHF 1.99 billion. This suggests that while some industries are finding ways to mitigate the impact, others are experiencing direct consequences.
Prior to the September rebound, the United States was Switzerland’s largest single foreign market for goods. The tariffs prompted shock and dismay
among Swiss export-oriented companies, forcing a reassessment of trade relationships. The US now shares the top spot with the European Union, having been overtaken by Germany in .
The shift in export destinations highlights a strategic response by Swiss companies to diversify their markets. Increased exports to EU countries and Canada have partially offset the decline in US demand. This diversification, however, requires significant adjustments and investments for businesses accustomed to the US market.
The US is a crucial market for Swiss watches, accounting for almost 50% of the growth in Swiss watch exports since and representing the biggest single market and primary growth driver for the industry. The tariffs pose a significant threat to sales, prompting CEOs in the Swiss watch industry to formulate new strategies to navigate the challenging landscape.
The broader economic context reveals a mixed picture. While total Swiss exports were down 1% in when adjusted for seasonal swings, they were up 2.4% in real terms. This suggests that price increases and shifts in product mix are partially offsetting the decline in volume. The situation underscores the vulnerability of export-dependent economies to protectionist measures and the importance of diversifying trade relationships.
The long-term implications of the US tariffs remain uncertain. The September rebound offers a glimmer of hope, but the underlying challenges persist. Swiss companies are now actively rethinking their trade ties, exploring new markets and adapting their strategies to navigate a more protectionist global environment. The situation is being closely monitored by Swiss policymakers and business leaders, who are seeking ways to mitigate the negative impacts and secure the future of Swiss exports.
The Swiss economy, traditionally reliant on free trade, is now facing a period of significant adjustment. The tariffs represent a test of its resilience and its ability to adapt to a changing global landscape. The coming months will be crucial in determining the extent of the damage and the effectiveness of the strategies employed to overcome these challenges.
