Bern – A recent survey by Swissmem reveals that 31% of Swiss mechanical and electrical engineering firms plan to relocate part of their operations to the European Union, prompted by challenges such as a strong Swiss franc and declining U.S. business due to tariffs, reports 24brussels.
Currently, Switzerland is facing one of the highest U.S. tariff rates globally, set at 39%, in stark contrast to the 15% tariff rate imposed by the European Union. Additionally, the Swiss franc has appreciated approximately 13% against the U.S. dollar this year, further complicating business conditions for Swiss companies.
Why are Swiss engineering firms considering relocation to the EU?
The imposition of U.S. tariffs and the strengthening of European currencies amid a weaker dollar have adversely affected the revenue performance of companies in the second quarter. Consequently, there is increasing pressure on businesses to either relocate operations or repatriate jobs to the United States.
According to Martin Hirzel, President of Swissmem, many Swiss tech companies are in the process of assessing their operational strategies and considering relocations. His comments stem from a survey conducted after the tariffs were enacted on August 7, which included responses from 385 member companies.
“Dismissals are inevitable,” Hirzel stated to reporters in Bern, emphasizing that the magnitude of job cuts will depend on the speed at which politicians can negotiate a reduction in the U.S. tariff rates.
How have Swiss exports to the US shifted in 2025?
According to Swissmem, the exports of Swiss tech goods to the U.S. saw a decrease of 0.9% year-on-year in the first half of 2025. This downward trend has been attributed to negative growth rates in Asia and stagnation in European demand. The organization has described the business outlook for the second quarter as particularly alarming.
Although Swiss tech exports to the U.S. surged in the first quarter, they dropped sharply after the announcement of potential tariffs in April, leading to a significant 13.4% year-on-year decline in overall order intake during the second quarter, as reported by Swissmem.
Ongoing negotiations between Switzerland and Washington aim to achieve lower tariffs; however, the prevailing uncertainty has led some companies, including aircraft manufacturer Pilatus, to halt their exports to the U.S.
