US EditionSwiss Manufacturers See US Tariffs Worsening a ‘Downward Spiral’
More than 30% of Swiss manufacturers plan to relocate to the EU amid a 39% US tariff and a 13% drop in orders, Swissmem reports economic downturn accelerating.
- On Tuesday, Swissmem warned that Switzerland's manufacturing slump worsens as over 30% of Swiss manufacturing companies plan to relocate operations to the European Union due to tariffs imposed by President Donald Trump.
- Tariff and franc pressure combine to strain Swiss exporters as the United States imposed a 39% tariff and the Swiss franc gained more than 12% against the dollar this year.
- Orders and sales figures confirm that manufacturing orders plunged 13% in the second quarter and sales declined for a ninth consecutive quarter, Swissmem, trade group representing more than 1,000 companies, urged government cost reductions.
- Swiss officials offered a new proposal intended to secure a deal by October, while Roche Holding AG and Novartis AG discussed the tariffs with the Swiss government earlier this month.
- Swissmem warns that in the coming months the downturn will accelerate, prompting Swiss businesses and executives to prepare emergency plans and focus on European Union trade, which accounts for almost half of Swiss exports.
12 Articles
12 Articles
The Swiss MEM industry lost sales and orders in the first half of the year. And that was even before the US customs hammer. According to the industry association, 25 000 to 30 000 jobs are at risk in the worst case.
The Swiss tech industry is smiling at the US tariffs of 39 percent. Its Swissmem association already sees the negative consequences. However, the EU could do new business.
Trump's 39 percent customs hammer against the Eidgenossen makes EU countries increasingly attractive as a production location. However, in Helvetia, German problems such as high energy prices are known.
Analysts consider the tariffs imposed by the US on Swiss imports of 39 percent to be a serious negative impact on the local economy. The effect could be on a level with the Covid-19 pandemic or the cancellation of the Swiss franc/euro minimum rate by the SNB.
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