Trump's tariff hammer is working Swiss companies halt investments - industry sounds the redundancy alarm
The new US tariffs are putting the Swiss economy under massive pressure. According to an EY study, 70 percent of companies have stopped investing, while the tech industry is sounding the alarm and demanding better framework conditions from politicians.
26.08.2025, 10:14
26.08.2025, 10:15
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- 70 percent of Swiss companies have postponed or canceled investments due to the US tariffs.
- The export-heavy tech sector, which is already suffering from weak demand, is particularly affected.
- The industry association Swissmem is calling on politicians to take swift measures to provide relief.
The Swiss economy is reacting with increasing uncertainty to the latest trade policy decisions made by the USA. According to an analysis published on Tuesday by the consulting firm EY, around 70 percent of companies in Switzerland have postponed or completely canceled planned investments. This was due to geopolitical tensions and protectionist measures such as the punitive tariffs imposed by the USA.
The new duties of up to 39% on Swiss exports to the United States are particularly serious. "For companies with strong sales markets in the US, this creates structural challenges - not least because globally ramified supply chains can hardly be adapted in the short term," said EY Chairman of the Board of Directors Daniel Gentsch according to the press release. The uncertainty is also having an impact on mergers and acquisitions.
Tech sector sounds the alarm
The export-oriented tech sector is feeling the consequences even more keenly. Swissmem President Martin Hirzel explained at a media conference that the tariffs had "significantly exacerbated" the already difficult situation. After two years of weak industrial demand and declining sales, the industry is now under additional pressure.
A survey by Swissmem shows that companies continue to see the strong franc as the biggest challenge - ahead of weak demand and bureaucratic pressure. In third place is concern about business in the US. Many companies are therefore examining new markets or business areas. At the same time, many companies are considering restructuring, job cuts, relocating production or short-time working.
"We don't want subsidies. But we need better framework conditions that significantly reduce location and production costs," demanded Hirzel. These include, for example, an extension of the short-time working period to 24 months, a reduction in bureaucracy and a halt to new regulations.
Access to international markets is also crucial: free trade agreements with the Mercosur states, Thailand and Malaysia must be ratified, existing agreements with China, Japan and Mexico must be improved and bilateral agreements with the EU must be driven forward.
