Customs: Swiss tech industry sees downward wheels through US tariffs

The Swiss Industrial Association of Tech Industry Swissmem sees signs of a strong slump in order incoming in the course of the high US tariffs. They declined by 13.4 percent in the second quarter compared to the previous quarter, reports the association in Bern. The high tariffs were not yet in force, but the threat has already caused uncertainty. Bad business also contributed to the result, especially in Asia.

“We are in a dangerous downward strudel, the suction effect of which is now being reinforced by the US tariffs,” says Swissmem director Stefan Brupbacher.

Business shift to the EU possible

In view of the difficult business environment, according to a survey by the association, almost a third (31 percent) wants to move business to the EU. The survey took place on August 7th when the high new US tariffs came into force.

The United States has imposed one of the highest import customs sets for Switzerland: 39 percent. The US customs on competitive products from Germany and other EU countries is 15 percent. The Association fears EU protection measures against cheap imports from third countries – which could also include Switzerland. He urges the government to quickly implement closer relationships with the EU.

In the first quarter, US exports rose by 5.3 percent compared to the previous year, in the second when the tariffs were already threatened by 3.1 percent.

China business particularly difficult

The fact that goods exports in the first half of the year decreased by 0.9 percent compared to the same period last year is primarily due to the poor result in Asia (minus 16.8 percent). The strong Swiss franc is also a problem for industry. The government asked the government to save jobs, as he announced.

The association represents the machine, electrical and metal industry as well as related technology grids. This includes heavyweights such as Schindler, Stadler and Pilate, but also many small and medium -sized companies. The industry employed around 325,000 people in the second quarter.