Swissmem is extremely disappointed with the actions of the US President. The introduction of tariffs of 31% is completely incomprehensible and arbitrary, especially as Switzerland removed all of its industrial tariffs in 2024. The new tariffs are a severe blow to the companies in the Swiss tech industry, which are already facing a difficult situation after many months of declining sales.
According to an initial analysis, all Swiss tech industry products that are not already burdened with tariffs of 25% on aluminium and steel products will be subject to a 31% tariff. A rate of 25% will apply to automotive suppliers. To make things even more difficult, EU exports will “only” be subject to a tariff of 20%. The tech industry will therefore be relatively less competitive both in the US market and compared to its competitors from the EU. Swissmem thus expects tech industry goods exports to the USA to fall sharply. This will hit SMEs without production facilities in the USA especially hard. They face losing this market altogether, unless they provide essential products. With their strategy of focusing on niche high-tech products, Swiss companies will therefore have to work even harder to prove themselves.
85% of exports go to other countries
The USA is the second-largest market for the Swiss tech industry after the EU at 55%. Last year, exports to the USA amounted to 10.1 billion Swiss francs, equating to an export share of just under 15%. However, we should not forget that 85% of our goods exports are to other markets. Companies and policymakers now need to keep calm and act decisively.
Under these circumstances, the other markets will now become even more important for companies. This primarily means focusing on their biggest market – the EU – as well as emerging markets such as India, South America, Southeast Asia and China. Investments in innovations will also become even more important. Only with better products and greater efficiency will companies be able to regain their competitiveness.
Swissmem has already been intensively advising its member companies for weeks in information webinars and by clarifying specific customs issues, and will continue to expand these support services.
Decisive action needed at the political level – both foreign and domestic
At the political level, the Federal Council must now seek in-person and urgent discussions with the relevant people in the US administration and explain Switzerland’s open trade policy and advantages. The aim must be to prevent or at least lessen the tariffs. The Swiss government also needs to facilitate access to the other markets more quickly. Specifically, the free trade agreement with India should be implemented as swiftly as possible following the referendum deadline. Other extremely urgent matters include concluding the free trade agreement with Mercosur and expanding the agreement with China. And not least, the Bilaterals III package will become even more significant. Our relationship with our most important trading partner by far needs to be settled as quickly as possible, and the Bilaterals III are the way to do so.
The greatest scope for action lies in domestic policy. To support the industry, the trade war should be recognised as a justification for short-time working, and the maximum period increased to 24 months as soon as possible. Swissmem also expects all sectors and parties to offer their unlimited support to the federal government’s free trade strategy. Companies also need to be released from any unnecessary regulation or financial burdens. The Ordinance on the CO2 Act that was approved yesterday and places additional constraints on industry is just one example of a clearly wrong approach.
For further information please contact:
Noé Blancpain, Head of Communications and Public Affairs
Tel. +41 44 384 48 65 / mobile +41 78 748 61 63
E-mail n.blancpainnoSpam@swissmem.ch
Philippe Cordonier, Head of Swissmem Romandie
Tel. +41 44 384 42 30 / mobile +41 79 644 46 77
E-mail p.cordoniernoSpam@swissmem.ch