as a horror scenario and "essentially dead" The Swiss Association of Machinery, Electrical and Metal Industries describes the implementation of the grotesquely high 39% import tariffs on Swiss tech products
Switzerland, Swissmem urgently appealed, must continue negotiations with the USA, even if the prospects for success currently appear slim. In addition, measures are urgently needed to improve the framework conditions for the entire export sector. Whether Swissmem's ten-point list of demands for policymakers will be helpful remains to be seen.
The association thanked the Federal Council and the administration yesterday for their strong commitment. Swissmem President Martin Hirzel stated: “Nevertheless, negotiations must continue, because the political climate in Washington can change at any time. This is demonstrated by the renewed threat from the US President to the EU to impose tariffs of 35 percent. Even with agreements, legal certainty and predictability are unlikely to return in the coming years.”
Swissmem President M. Hirzel
Switzerland earns every second franc through foreign trade. "If the export industry suffers, the prosperity of the entire population is at risk." There will no longer be enough money available for social security, healthcare, and infrastructure maintenance. Jobs in domestic sectors such as hospitality, hospitals, retail, and construction will also be jeopardized. Swissmem Director Stefan Brupbacher says: "The world has been different since August 1, 2025, than it was before Liberation Day. Switzerland must now unleash its strengths: politics, business, and society as a whole must stand together for the export industry."
To support the export sector, Swissmem is calling, among other things, for the maximum duration of short-time work compensation to be increased to 24 months in order to prevent mass layoffs. Innosuisse should significantly increase its project funding. Further expansion of social spending through higher payroll taxes is unsustainable for companies. The National Council must approve the revision of the War Materiel Act as proposed by the Council of States. Only this will allow exports of armaments to partner countries to resume. The CO₂ reduction pathway set by the Federal Council is unrealistic and jeopardizes industry. Switzerland must not copy the EU's industry-unfriendly climate policy. A carbon border adjustment mechanism would destroy sales markets and jeopardize Switzerland's position as a production location.
“Don’t let up”: St. Brupbacher
“Industrial companies need electricity at economically viable prices and stable grids. The existing grid cost-passing mechanism must be maintained. Market-based feed-in tariffs and an electricity agreement with the EU are crucial.” An investment screening law is inappropriate, as it only creates bureaucracy and deters foreign investors. Strategically important infrastructure is already state-owned. The new free trade agreements (Mercosur, Thailand, Malaysia) must be ratified quickly, and existing agreements (China, Japan) must be improved. The Bilateral Agreements III are essential for stable relations with the EU.
