Swiss firms shoring up plans, looking to Asia after Trump imposes 39% tariff

Some are reviewing pricing strategies, contemplating US market exit to mitigate impact

- Kash Cheong

ZURICH - US President Donald Trump's surprise 39 per cent tariff on Swiss goods has the Alpine nation's enterprises scrambling to mitigate the impact on their businesses, with some switching gears to look for growth in Singapore and other parts of Asia, among other strategies.

"If the 39 per cent tariff continues, we will have to reduce reliance on the US market and focus on growth in Asia — places like Singapore, India (and) Bangkok," Mr Renzo Davatz, the chief executive officer of Netstal, a 550-employee manufacturer of injection moulding machines in the industrial canton of Glarus, told The Straits Times.

Netstal, which exports 15 per cent of its production — worth about 25 million Swiss francs (S$39.8 million) — to the US, expects to be hit by Mr Trump's tariffs, like many other manufacturing small and medium-sized enterprises (SMEs) in Switzerland producing specialised equipment.

The US is Switzerland's second-largest overseas market after the European Union (EU), accounting for 18.6 per cent of total Swiss exports in 2024.

A 31 per cent tariff was initially floated by Mr Trump earlier in April; the Swiss government had hoped it could be lowered to 10 per cent.

"But 39 per cent is worse than the worst case expected," said Mr Roger Wehrli, the director of Chocosuisse — the national chocolate industry association representing Swiss chocolatiers like Lindt & Sprungli and Nestle Suisse.

Economists warn that if the punitive tariff sticks, it could hit Swiss gross domestic product (GDP) by up to 0.6 per cent and cause between 7,500 and 15,000 job cuts.

It has prompted companies to lobby the government for wider unemployment protections, review their pricing strategies, or simply contemplate an exit from the US market altogether.