Bern (Brussels Morning Newspaper) – According to Swissmem on Tuesday, 31% of Swiss mechanical and electrical engineering firms intend to move part of their operations to the European Union, facing challenges from a strong Swiss franc and declining U.S. business caused by tariffs, Reuters reported.
This month, Switzerland faced one of the highest U.S. tariff rates globally at 39%, compared to 15% in the neighbouring European Union. Meanwhile, the safe-haven Swiss franc has appreciated approximately 13% against the U.S. dollar this year.
Why are Swiss engineering firms considering relocation to the EU?
U.S. tariffs and the appreciation of European currencies due to dollar weakness have undermined companies’ top-line performance in the second quarter. This has heightened pressure on them to relocate operations or bring jobs back to the United States.
Many Swiss tech companies are preparing to streamline and relocate their operations, according to Swissmem President Martin Hirzel. This statement is based on a survey of member companies conducted after the levy took effect on August 7, with 385 companies participating.
“Dismissals are inevitable,” he told reporters in Bern, saying that the extent of layoffs would depend on how swiftly politicians can reduce the U.S. tariff rate.
Hw have Swiss exports to the US shifted in 2025?
Swiss tech industry goods exports in the first half of 2025 decreased by 0.9% year-on-year, according to Swissmem. The decline was mainly due to negative rates in Asia and stagnant demand in Europe. The organisation described the second quarter’s business trend as especially concerning.
Swiss tech exports to the U.S. increased sharply in the first quarter but declined after the U.S. threatened tariffs in April. This caused overall order intake to fall 13.4% year-on-year in the second quarter, according to Swissmem.
Switzerland continues negotiations with Washington, aiming to lower tariffs. Due to ongoing uncertainty, companies like aircraft manufacturer Pilatus have decided to stop exporting to the U.S.
