Swiss industrial exporters are warning that a widening tariff gap with the European Union could undermine their competitiveness in the U.S. market, according to a survey released Monday. The Swissmem industry association reported that a 12.5% tariff imposed by Washington on Swiss goods since late July has placed local manufacturers at a disadvantage compared to EU rivals, who face a 2.5 percentage point lower import charge.
The survey, conducted among Swiss industrial firms, found that more than half of respondents absorbed the tariff impact on profit margins rather than passing costs to U.S. customers. Just 42% were able to transfer the additional expenses to American buyers, while 5.3% of companies reported a decline in exports to the U.S. during the first six months of 2026. Swissmem chairman Martin Hirzel emphasized the risks of sustained trade tensions, stating that the tariff differential and ongoing U.S. investigations into industrial overcapacity could further strain Swiss exporters.
Hirzel cautioned that relocating production to the U.S. was not a viable solution due to a shortage of skilled labor in America. He added that securing an agreement that prevents Swiss firms from being disadvantaged relative to EU competitors remains critical. The survey also highlighted that nearly half of companies would face serious jeopardy to their U.S. business if the tariff gap widened by an additional 5 percentage points.
