Swiss Industry Group Swissmem: urges Swiss government to conclude deal on trade agreed late 2025 with the United States so as to have secure legal footing

Swiss Industry Group Swissmem: urges Swiss government to conclude deal on trade agreed late 2025 with the United States so as to have secure legal footing

Swiss Industry Group Swissmem Urges Swift Legal Finalization of U.S. Trade Deal to Stabilize Export Sector

The Swiss mechanical and electrical engineering industry association Swissmem has called for the Swiss government to expedite the formalization of a recently negotiated trade agreement with the United States to establish a secure legal framework for Swiss exporters. The deal, announced in late 2025, reduces U.S. tariffs on Swiss goods from 39% to a capped 15%, offering temporary relief to sectors such as industrial machinery, precision instruments, and watchmaking. However, Swissmem emphasizes that the agreement must be codified to mitigate ongoing uncertainties and provide long-term stability for businesses.

The U.S. tariff reductions follow a sharp decline in Swiss tech industry exports to the American market, which fell by 14.2% year-on-year in Q3 2025, exacerbating a nine-quarter trend of declining revenues. While the lower tariffs alleviate immediate pressures, Swissmem President Martin Hirzel cautioned that "new tariffs could be introduced at any time," and the strong Swiss franc—up nearly 10% against the dollar in 2025—continues to erode competitiveness. Additionally, global demand for capital goods remains subdued, with Swissmem reporting that 31% of member companies anticipate falling export orders over the next 12 months.

Swissmem's advocacy aligns with broader calls for policy action to bolster the export-driven sector. The association has urged the Federal Council and Parliament to prioritize concluding the U.S. trade deal by Q1 2026, as outlined in bilateral agreements, while simultaneously accelerating free trade agreements (FTAs) with Mercosur, Thailand, and Malaysia. It also highlights the need to revise the Federal Act on War Material to streamline defense exports and reduce domestic production costs, particularly for SMEs, which saw sales drop by 9.0% in Q3 2025.

The U.S. agreement includes commitments from Switzerland to invest $200 billion in U.S. manufacturing by 2028, alongside mutual tariff reductions on agricultural and industrial goods. Swissmem views this as a critical step but stresses that legal certainty—rather than temporary reprieve—is essential to restoring investor confidence. "The tech industry cannot operate in a vacuum of unpredictability," said Swissmem Director Stefan Brupbacher, underscoring the urgency of finalizing the deal to anchor Switzerland's position in global markets.