Companies stop exporting to the United States

Just two weeks after the US imposed 39% tariffs on Swiss goods, the consequences are already being felt by Swiss companies . Four out of ten SMEs operating in the mechanical, electrical, and metalworking industries are recording losses in their operations, according to a survey by the umbrella association Swissmechanic, reported by the "NZZ am Sonntag."

Nearly 10% of the companies surveyed have temporarily suspended exports to the United States. They want to avoid financial damage, as tariffs have made many exports to the country loss-making. A similarly high proportion of companies are considering reducing their production in Switzerland or relocating to European Union (EU) countries. "If we don't find a solution, tens of thousands of jobs are at risk," says Nicola Tettamanti, a Ticino-based entrepreneur and president of Swissmechanic.

This week, the situation worsened further. US Customs reclassified more than 400 industrial components. They are now subject to steel and aluminum tariffs of 50% instead of 39%. Companies must quickly determine which products are affected. "Those that cannot do so will pay the punitive 50% tariff on all their machinery," explains Claudia Feusi, a customs and trade consultant at Douana.

SMEs are now trying to find solutions. For example, they can take advantage of a product's rules of origin. If the processing step in the local factory is minimal, companies can retain the last country as the country of origin. Adjusting the customs value is also an idea that is gaining ground. For example, exporting a luxury watch at the production price instead of the significantly lower selling price could reduce the customs burden.