Business
Trump tariffs: Swiss companies target alternative export markets
Imogen FoulkesBern, Switzerland
AFP via Getty ImagesPresident Trump’s tariffs have caused shock worldwide, with governments scrambling to find a deal to placate him. Some have managed: the UK got in first, with a sweet deal of just 10%, the European Union crept in behind with 15%.
Still more than they were paying before Mr Trump’s “liberation day”, but less than they had feared.
Spare a thought then for Switzerland, which has been hit with punitive tariffs of 39%, and has so far been unable to persuade the US president to relent. Switzerland is not in the EU, so it can’t benefit from the deal struck by Brussels.
But Switzerland is regularly ranked as the world’s most competitive and innovative economy. It is also one of the biggest investors in the US, creating, Swiss business leaders say, 400,000 jobs. That’s why they find the US strategy not only outrageous, but inexplicable.
“Thirty nine percent tariffs: I was just shocked,” says Jan Atteslander, director of international relations for the Swiss business federation Economiesuisse.
“This is unjustified, you can’t explain why they are so high.”
Getty ImagesSince the tariffs (the highest in Europe and the fourth-highest worldwide) were announced on 1 August, the Swiss government has been desperately trying to renegotiate with Washington, to no avail. The US president, it seems, has moved on to other matters.
Around 17% of all Swiss exports go to the US, a market Switzerland cannot afford to lose overnight. Now that the tariffs have come into effect, the once muscular Swiss economy is suffering. Economic growth is shrinking, and job losses in key industries appear inevitable.
Switzerland’s most lucrative exports to the US are pharmaceuticals. Ironically, they are not affected by the 39% tariffs, but might be subject to the 100% tariff on imported medicines that Trump recently threatened. That would be another huge blow.
Another big Swiss exporter to the US is Switzerland’s world-leading medical technology industry.
“It’s precision mechanics, it has its roots in the watchmaking industry,” explains Adrian Hunn, who is managing director of Swiss Medtech, the trade body representing the industry.
MPSThe town of Biel, the historic home of Swiss watchmaking, and now the site of medical technology companies, demonstrates why there may be no winners, but only losers, from Washington’s tariff policy.
The company MPS (short for micro precision systems), produces medical instruments from aortic valve replacements to the tiniest of surgical drills, used in hip or knee replacements. Just the kind of things a wealthy country with an ageing, and increasingly overweight population – like the US – needs.
So precise is the production process, that even the machines used to produce the devices are made and specially calibrated locally.
“It’s a very integrated way of working,” explains MPS’s CEO Gilles Robert.
“Measuring equipment, milling tools, cutting liquids. That’s why we call it an ecosystem that we have here in Switzerland.”
Mr Robert’s proudest product is the engine for the world’s only medically-registered artificial heart.
Just 120 of them have been transplanted worldwide. “It’s a pump that will pulse in both sides, to create beating in both chambers, and allow people currently waiting for a transplant, people with terminal heart deficiencies, to keep on living.”
Technology like this is very different from the car industry, where, often, the brakes are made in one country, the windscreen wipers or door handles in another, and everything is assembled in a third.
That’s why Mr Robert is not convinced that Trump’s stated strategy of moving production to the US could work.
“It would be extremely challenging if not impossible to separate the components from the actual product assembly,” he says. “And I think those types of skills would be extremely hard to find in the US.”
MPSTrump has said the countries hit with tariffs will “eat them”. So can MPS absorb the 39%?
“They had the best price before the new tariffs came into effect,” says Mr Robert.
“We don’t have the leeway to give a discount to our customers, because the margins are already as low as they can be.”
Instead, says Adrian Hunn of SwissMedTech, “Medical devices will get more expensive for US patients.”
And he adds, probably for US taxpayers as well. “Costs for hospitals and healthcare systems in the US in many cases are funded by public reimbursement programmes, and this means taxpayers bear the burden.”
Perhaps even more worrying for patients, since some high precision medical devices are made only in Switzerland, is the possibility that Swiss companies will stop exporting to the US altogether.
“These are companies that have very good products,” says Jan Atteslander of Economiesuisse. “And they have told us, we just stopped delivering, sorry guys.”
Mr Atteslander and Mr Hunn agree with the Swiss government’s strategy of not retaliating to the US tariffs. Switzerland’s David, the thinking goes, cannot realistically take on America’s Goliath.
But the Swiss are actively chasing other markets. A trade deal with India – “the fastest growing economy on the planet, 1.4 billion potential consumers,” Mr Atteslander points out – came into force on 1 October.
An agreement with South American trade block Mercosur has also just been concluded, Switzerland’s longstanding trade deal with China is being upgraded, and free trade with the EU, the market for 50% of all Swiss export, remains intact.
So although the US tariffs are already damaging the Swiss economy, and some still cling to hope that Trump may change his mind, there is also a quiet confidence that Switzerland will, if it has to, weather this storm.
“To be a successful export nation, you have to have resilience in your DNA,” says Mr Atteslander.
The more long-term damage may be to the traditionally good business relations between the two countries. In Switzerland, there is a real feeling of hurt. The US wasn’t just an important market: the Swiss loved doing business there.
Many thought they had found entrepreneurial soulmates, more oriented to the free market than their more regulated partners in the EU. Now, both Adrian Hunn of SwissMedTech and Gilles Robert of MPS have abandoned that notion – for now at least.
“I lived six years in the US, so I was very close,” says Mr Hunn.
“I have a lot of friends there. So, this, it didn’t change my view of America, but it did change my view, you know, of how the current administration in the US is acting globally, and treating allies.”
“I studied a year in the US,” says Mr Robert.
“It had an impact on me, on my way of looking at the world. How you can take risks, be an entrepreneur, and be positive about the future.”
But, he adds hopefully: “Even though I’m sad about this situation, we will overcome, we’ll find solutions, and I’m sure in the end reason will prevail.”
Business
Trump administration in advanced talks for a rescue package for Spirit Airlines, source says
A Spirit commercial airliner prepares to land at San Diego International Airport in San Diego, California, U.S., January 18, 2024.
Mike Blake | Reuters
The Trump administration is in advanced talks for a financing package for Spirit Airlines as the carrier is facing the risk of a liquidation, according to a person familiar with the matter.
Spirit had been facing a potentially imminent liquidation, people familiar with the matter told CNBC last week, speaking on the condition of anonymity to discuss matters that had not yet been made public. The Dania Beach, Florida-based carrier in August filed for its second Chapter 11 bankruptcy in less than a year, after it struggled to increase revenue to cover rising costs.
President Donald Trump hinted at potential government aid on Tuesday, telling CNBC’s “Squawk Box“, “Spirit’s in trouble, and I’d love somebody to buy Spirit. It’s 14,000 jobs, and maybe the federal government should help that one out.”
The White House didn’t immediately comment.
“We are hopeful that the government will recognize the needs for emergency funds especially in the current economic environment,” a spokesperson for the Associated of Flight Attendants-CWA, which represents Spirit’s cabin crews, said in a statement. “The last thing our economy needs is tens of thousands more people out of work and the last thing the travelling public needs is fewer choices in air travel.”
The terms of the financing deal weren’t immediately known. The Wall Street Journal earlier reported that the talks were in an advanced stage.
The U.S. airline industry accepted more than $50 billion in taxpayer aid to weather the Covid-19 pandemic, which is still its biggest-ever crisis, but those funds weren’t handed to one specific airline. Some of the aid gave the U.S. government stock warrants for airlines.
Airlines also received a government bailout following the Sept. 11, 2001, terrorist attacks, but that money was also for more than one company. The U.S. in 2008-2009 also bailed out the auto industry during the financial crisis and took stakes in manufacturers.
The Trump administration has taken equity stakes in some companies it deemed critical to national security like Intel and USA RareEarth, though Spirit stands out as it is in bankruptcy.
In February, Spirit said it expected to exit bankruptcy in late spring or early summer, telling a U.S. court that it would shrink and focus its planes on high-demand routes and travel periods. Pilot and flight attendant unions had also made concessions, including going on furlough in recent months, in a bid to help Spirit survive.
But jet fuel prices have nearly doubled in some parts of the U.S. since then, further adding to challenges for Spirit and the rest of the airline industry.
As a low-fare airline that also faces competition from larger carriers with their own no-frills, basic economy offerings, it has grown harder for Spirit to cover expenses. Spirit had introduced extra-legroom seats and other premium options to try to cater to higher-spending customers.
Business
Iran war: Trump sanctions waiver or not – why India continues to buy Russian oil – The Times of India
In early March, India was staring at a possible crude oil supply problem – the US-Iran war caused the Strait of Hormuz through which 20% of global crude transits to be effectively closed. To rescue came Russian crude oil! In fact, Russian crude has become a crucial support for India’s oil imports both in April and March. The import volumes are actually touching highs seen when India was bagging Russian crude at a huge discount.US President Donald Trump sanctioned two Russian oil majors towards the end of last year. This made it financially unviable for Indian refiners to continue to buy Russian crude at the same level as before, though flows of unsanctioned oil continued.However, in March, with the US sanctions waiver in effect, India has aggressively procured Russian crude, picking up millions of barrels. After the Russia-Ukraine war, Russian crude has maintained its position as the largest supplier of crude oil to India. Through Western sanctions, US President Donald Trump’s pressure and sanctions on Russian oil majors, crude from Russia has continued to flow to India, though the levels have varied.
However, experts believe that once the situation in the Middle East normalizes, India will go back to buying crude from Gulf countries, and Russia’s percentage in India’s oil imports will come down.
US sanctions waiver & India’s aggressive buying
India has never officially said that it will stop buying Russian crude, and even when levels dropped after sanctions, Russia was still the biggest contributor. However, the Donald Trump administration’s decision to waive sanctions on Russian crude, and extend that waiver to May has allowed Indian refiners to step up procurement without any worries.According to the latest report from Centre for Research on Energy and Clean Air (CREA)’s analysis, while India’s total crude imports recorded a 4% reduction in March, Russian imports doubled.
“The biggest shift was in state-owned refineries’ imports from Russia, which saw a massive 148% month-on-month increase. Their imports were in fact 72% higher than March 2025, presumably due to Russian barrels being more available in the spot market, which serves as the primary source of imports for them,” says CREA.Russia’s share of India’s crude oil imports in March 2026 placed the month at the upper end of historical highs, closely mirroring peak levels seen in 2023, when Western sanctions redirected Russian oil flows toward Asia and made Moscow India’s single largest supplier.Sourav Mitra, Partner – Oil and Gas, Grant Thornton Bharat explains the emergence of Russia as a dominant supplier of crude for India.Russia’s share surged sharply in the months following the Ukraine war, peaking during several months in mid‑2023, particularly around May–June, when imports rose to about 1.9-2.0 million barrels per day and accounted for nearly 42-45% of India’s crude basket, displacing Iraq and Saudi Arabia. That dominance persisted through much of 2023, with average shares close to 40% between April and September, before easing in 2024 and early 2025 as price discounts narrowed, compliance costs increased and refiners partially rebalanced toward Middle Eastern grades.“Against this backdrop, the rebound seen in March 2026 effectively matches the 2023 peak, although the underlying drivers differed, with the latest spike largely reflecting supply disruptions in West Asia that curtailed Gulf inflows and compelled refiners to rely more heavily on available Russian cargoes. We expect that while March marks a return to near‑record dependence on Russian crude, such elevated levels are unlikely to persist once Middle Eastern supply chains stabilize,” Mitra tells TOI.
No more discounts! India paying a premium for Russian crude
What stands out is the fact that when India stepped up its procurement of Russian crude after the Ukraine war began, the oil was available at very steep discounts. This was due to European sanctions that made Russian crude available at a much lower rate than Brent. Come 2026, with oil supplies via Hormuz disrupted and global crude oil prices rising, Russia is now selling at a premium!According to Sourav Mitra of Grant Thornton Bharat, Indian refiners are currently paying a premium of about $4-6 per barrel over the Brent benchmark for Russian crude. These are some of the highest delivered premiums on Russian crude since Russia began diverting large volumes of crude to Asia after the Ukraine war, he tells TOI. “This shift is attributed to intense competition for prompt Russian cargoes as disruptions to Middle Eastern supply routes pushed refiners to prioritise assured deliveries over price. The premium contrasts starkly with February 2026, when Indian buyers were still securing Russian crude at discounts of roughly $12–$15 per barrel, shortly before conditions deteriorated in the Strait of Hormuz,” he elaborates.In fact, the turnaround is even more pronounced compared with 2022-23, when Russian crude frequently traded $20-$30 below Brent. The price inversion was reinforced by the US sanctions waiver issued in early March 2026 and effectively released millions of barrels into the market, strengthening sellers’ leverage. “As a result, India has shifted from discount‑driven buying to security‑led procurement, paying a premium to ensure supply continuity while Gulf flows remain disrupted,” he adds.
Why India continues to buy Russian crude
Russian oil is not going out of India’s crude imports anytime soon, experts say.However, Ivan Mathews, Head of APAC Analysis at Vortexa expects Russian crude imports to decline month-on-month in April. “Discounts on Russian crude were less competitive due to increased demand during the sanctions waiver period, which has since been extended to 16 May. This will lead to lower marginal imports for economics-driven refineries in India. Additionally, reduced crude loadings from Russia will decrease the availability of Russian barrels for imports in the coming weeks,” Mathews tells TOI.
Mitra of Grant Thornton Bharat says that Russian crude is now well integrated into India’s refining system and serves as a reliable fallback when alternative supplies tighten. Russia is likely to remain an important supplier through 2026 even as its share moderates from March’s highs and Middle Eastern flows stabilize.Sumit Ritolia, Manager Modelling and Refining at Kpler believes that Russian oil will continue to be a major part of India’s crude oil imports in the coming months as well. Currently, India’s Russian crude imports are tracking at around 1.6mbd, which is approximately 375 kbd lower than March levels.However, as Ritolia points out, this dip needs context as Nayara (≈400 kbd, fully reliant on Russian crude) has been under maintenance since the second week of April. Adjusting for this, the underlying demand signal for Russian barrels remains intact.“The flows are expected to range between 1.5-2 mbd with a slight dip possible due to ongoing infrastructure issues in Russia due to the conflict with Ukraine,” Ritolia tells TOI.Interestingly, Kpler data shows that even after US sanctions on Russian majors Lukoil and Rosneft came into effect late last year, Russia continued to be the largest supplier of crude oil to India. However, admittedly the volumes saw a sharp drop, with February levels being much lower. While the Donald Trump administration claimed finalising a trade deal contingent on India stopping crude imports from Russia, New Delhi has never said it will not buy oil from Moscow.The US first waived the sanctions in early March and then extended the waiver recently. Experts are of the view that even when the sanctions waiver lapses, Russian oil will continue to be imported, though the quantities may dip.“A key point that is often missed is that Russian oil itself is not sanctioned but certain entities, vessels, and financial channels are,” says Sumit Ritolia.According to Ritolia, Russia continues to be a core supplier for India, but in the absence of sanctions waiver procurement must strictly ensure:• No involvement of sanctioned sellers or intermediaries• Use of non-sanctioned vessels• Fully compliant financial, insurance, and trading channelsIndia is unlikely to move away from Russian crude in the near term. Instead, we should expect more documentation, tighter screening rather than a structural shift in sourcing as and when sanctions lapse, Ritolia added.
India’s Diversified Crude Supplies
But even as Russia is expected to continue being an important player in India’s crude imports, it is equally important to note that New Delhi has diversified its basket to include over 40 countries.As Sushil Mishra, Director, Crisil Intelligence points out: Historically, Russia’s share in India’s crude imports peaked at over 40%, however, it has varied in the last few years amid diversification efforts and evolving geopolitical dynamics. Improved refinery flexibilities have enabled Indian refiners to process a wider range of crude grades including those from the American, Russian, and Middle Eastern.“India continues to strengthen its energy resilience by diversifying crude sourcing and maintaining a pragmatic sourcing strategy driven by price, availability, and energy security considerations. This approach allows flexibility to adjust sourcing patterns in response to changing global market conditions and geopolitical developments,” he tells TOI.
A United Airlines plane approaches the runway at Denver International Airport on March 23, 2026.
Al Drago | Getty Images
United Airlines slashed its 2026 earnings outlook Tuesday as it grapples with a surge in jet fuel prices due to the Iran war, but CEO Scott Kirby said demand remains strong.
United said it could earn between $7 and $11 a share on an adjusted basis this year, down from its previous forecast of between $12 and $14 a share that it released in January, more than a month before the U.S. and Israel attacked Iran.
Wall Street had already been adjusting its expectations for the year because of higher fuel. Analysts polled by LSEG had forecast that United’s adjusted, full-year earnings would be $9.58 a share.
The carrier, like others, is trimming some of its planned flying this year to reduce costs. Lower capacity can drive up airfare, with fewer seats on the market.
For the second quarter, United forecast adjusted earnings of between $1 and $2 a share. Analysts had expected $2.08 a share for the quarter. United estimated its fuel price would average $4.30 a gallon in the second quarter.
The carrier said it expects its revenue to cover between 40% to 50% of the fuel price increase in the second quarter, as much as 80% in the third and between 85% and 100% by the end of the year.
United reiterated that it is tweaking its schedules to adjust to higher fuel, with capacity in the second half of the year expected to be flat to up about 2% on the year. It grew 3.4% in the first quarter.
Here is what United Airlines reported for the quarter that ended March 31 compared with what Wall Street was expecting, based on estimates compiled by LSEG:
- Earnings per share: $1.19 adjusted vs. $1.07 expected
- Revenue: $14.61 billion vs. $14.37 billion expected
Revenue, profit climb
Revenue overall rose more than 10%, to $14.61 billion, up from the $13.21 billion from a year before.
For the first quarter, United’s net income rose 80% to $699 million, or $2.14 cents a share, compared with net income of $387 million, or $1.16 cents a share, a year earlier. Adjusted for one-time items, United posted earnings per share of $1.19 a share.
Unit revenue was up in every reported segment, including for domestic U.S. flights, where it rose 7.9% to $7.9 billion from a year earlier, signaling strong pricing power in the quarter.
Jet fuel in the U.S. was going for $3.51 a gallon on Monday, down from the high on April 2 of $4.78, but far above the $2.39 on Feb. 27, the day before the first attacks on Iran, according to prices assessed by Platts.
Airline executives have said demand has remained robust even while they have increased fares and checked bag fees as they pass along higher fuel prices to customers.
“Bookings are strong,” Kirby told CNBC’s “Squawk Box” on Wednesday.
United and the rest of the industry have become more reliant on travelers who are willing to shell out more for flights and bigger seats, and who are less affected by price increases.
Alaska Airlines pulled its 2026 forecast on Monday because of higher fuel prices. It has raised fares about $25, CEO Ben Minicucci told analysts Tuesday.
Merger ambitions?
Kirby is likely to face questions on the company’s 10:30 a.m. ET earnings call on Wednesday about his ambitions for a merger with another airline.
Kirby floated a potential merger with American Airlines to a Trump administration official earlier this year, according to a person familiar with the matter, but President Donald Trump said he was against the idea.
“I don’t like having them merge,” he told CNBC’s “Squawk Box” on Tuesday morning. He said he would like someone to buy struggling discount carrier Spirit but he also suggested that the federal government could “help that one out.”
American also rejected the idea of a merger with United last week.
When asked about floating the merger, Kirby declined to confirm the meeting to CNBC’s “Squawk Box” on Wednesday but said: “We want to create a truly global airline.”
Kirby reiterated his view that the U.S. is at a deficit in international air travel as customers fly on international competitors, some of which are state owned.
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