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
Asian stocks today: Kospi drops 1.6% as Middle East tensions weigh on markets – The Times of India
Asian stocks mostly fell on Friday as the ongoing conflict in the Middle East continued to unsettle global markets, while oil prices remained elevated despite some efforts to ease supply concerns.After a difficult week on trading floors, investors are heading into the weekend uncertain about when the US-Israel war on Iran and Tehran’s attacks across the Gulf region might end.Global equities have been battered by the crisis, which has pushed crude prices sharply higher and raised fears of renewed inflation that could weigh on the global economy. Oil prices have surged by about a fifth since last Friday, the day before the attacks began.Although markets saw a rebound in the middle of the week, analysts warned that the longer the conflict continues, the more pressure it will put on financial markets.“It is too soon to suggest that stocks have bottomed,” wrote IG chief market analyst Chris Beauchamp, as quoted by AFP.“Unless the war ends soon- and if anything a more intense conflict seems more likely- markets will struggle. Volatility remains elevated, which means we should expect plenty of two-way price action, but a continued decline for the moment seems likely, even with short-term bounces along the way.”The conflict also appears unlikely to ease soon. Iranian foreign minister Abbas Araghchi said Thursday that Iran was neither seeking a ceasefire nor negotiations with the United States.Asian markets largely followed losses on Wall Street, where all three main indexes ended lower despite staging late rallies.Seoul again saw sharp movement. The Kospi index, which plunged nearly 19 percent on Tuesday and Wednesday before rebounding more than nine percent on Thursday, fell another 1.5 per cent.Sydney, Singapore, Wellington, Manila and Jakarta were also down, while Tokyo, Hong Kong, Shanghai and Taipei managed gains.Concerns about rising crude prices have also intensified fears that inflation could climb again, potentially forcing central banks to reconsider plans to cut interest rates, with some analysts warning that rate hikes could even return.While Iran has not officially shut off the Strait of Hormuz, shipping through the key waterway has all but dried up. Around a fifth of the world’s crude supply and large volumes of gas normally pass through the strait.There was some relief in oil markets after US Interior Secretary Doug Burgum said officials were considering measures to ease the surge in prices.The White House also temporarily eased sanctions against Russia on Thursday, allowing Russian oil currently stranded at sea to be sold to India until April 3.Treasury Secretary Scott Bessent said the waiver was issued “to enable oil to keep flowing into the global market.”Earlier this week, US President Donald Trump pledged to protect ships passing through the Strait of Hormuz.Other countries have also taken steps to secure supplies. According to Bloomberg News, China has asked its largest oil refiners to suspend exports of diesel and gasoline amid fears of shortages.Despite the small pullback, oil prices remain high. By the end of trading Thursday, Brent crude had risen about 19 percent since last Friday, while West Texas Intermediate had climbed more than 22 percent, briefly crossing $80 a barrel for the first time since January last year.Investors are also watching the release of US jobs data later on Friday for clues about the strength of the world’s largest economy.At around 0230 GMT, oil prices were higher, with West Texas Intermediate rising 2.0 percent to $79.38 per barrel and Brent North Sea Crude up 1.5 percent at $84.10 per barrel. In equity markets, Seoul’s Kospi fell 1.6 percent to 5,497.51, while Tokyo’s Nikkei 225 rose 0.4 percent to 55,490.04. Hong Kong’s Hang Seng Index gained 0.9 percent to 25,557.59 and Shanghai’s Composite edged up 0.1 percent to 4,111.86. In currency trading, the euro strengthened to $1.1617 from $1.1604 on Thursday, while the pound rose slightly to $1.3367 from $1.3357. The dollar slipped to 157.51 yen from 157.55 yen, and the euro rose to 86.91 pence from 86.87 pence.
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Every $10 rise in global crude oil prices could shave around 0.5 percentage points off India’s GDP growth, say experts
India imports nearly 50 percent of crude oil from the Middle East
Every $10 rise in global crude oil prices could shave around 0.5 percentage points off India’s GDP growth, underscoring the country’s heavy reliance on imported oil and vulnerability to global energy volatility, Vandana Bharti, Research Head–Commodity at SMC Global Securities, told ANI.
In an interview with ANI, Bharti said escalating geopolitical tensions in West Asia pose a significant economic risk for India as crude prices climb and supply chains face potential disruptions.
“Every $10 increase in crude oil prices impacts India’s GDP by roughly 0.5%. We have already seen prices rise by about $10–$15 recently, and the economic impact will eventually reflect in growth numbers,” she said.
West Asia tensions driving oil prices higher
The surge in oil prices follows intensifying tensions involving the United States, Israel and Iran, particularly around the Strait of Hormuz — a critical maritime corridor through which roughly 20–25% of global oil shipments pass.
Bharti said the conflict has injected additional uncertainty into global energy markets and added what she described as a “war premium” to crude prices.
“It’s not just about the possibility of the Strait of Hormuz closing. Insurance costs and freight charges are rising, and shipments are being rerouted. All these factors add a war premium to crude oil prices and increase market uncertainty,” she said.
Risks extend beyond shipping
According to Bharti, the risks go beyond maritime routes and extend to energy infrastructure itself.
“Energy sites such as crude oil facilities and LNG plants are potential targets. There are also concerns about seabed cables and other critical infrastructure. So the threat is not only to energy supply but also to broader global trade and connectivity,” she noted.
Crude prices rise sharply
Oil prices have already surged as tensions intensified in the region.
Bharti said crude climbed from around $69 per barrel to nearly $78 per barrel within a week.
“In just one week we have seen prices move from about $69 to $78 per barrel. If tensions persist, crude could rise further to around $85–$87 per barrel in the coming days,” she said.
India’s reliance on Middle Eastern crude
India remains particularly vulnerable to such price shocks due to its heavy dependence on imported oil.
Bharti noted that roughly half of India’s crude imports come from the Middle East, and many domestic refineries are specifically configured to process Middle Eastern crude grades.
“India imports nearly 50% of its crude from the Middle East, so any disruption in the region directly impacts supply availability and pricing,” she said.
India maintains strategic petroleum reserves that can help cushion short-term disruptions, but Bharti emphasised that these are primarily meant for emergencies.
“We have reserves that can last about 25–30 days in emergency situations, but the structural dependence on Middle Eastern supply remains,” she said.
She added that even brief supply disruptions could trigger volatility across Asian financial markets.
“Even a two-week disruption could create significant volatility in Asia. We are already seeing pressure on currencies, equity outflows and rising economic uncertainty,” Bharti said.
Diversification may cushion the impact
Bharti said India could mitigate some risks by diversifying crude supply sources.
“Russia has been offering crude at discounted prices, so India may increase purchases from Russia or other suppliers if required. Adjusting supply chains and renegotiating trade arrangements can provide some relief,” she said.
She also pointed out that members of the Organization of the Petroleum Exporting Countries (OPEC) may attempt to stabilise prices, although security concerns could limit immediate production increases.
Impact on fertilisers and agriculture
Higher crude prices could also ripple into other sectors of the economy.
Bharti warned that rising energy costs may push up fertiliser prices and agricultural input costs, potentially affecting the upcoming kharif crop season.
“Higher energy costs could make fertilisers and farm inputs more expensive, which may increase the cost of cultivation for farmers,” she said.
Renewables gain strategic importance
Bharti added that the ongoing geopolitical tensions highlight the need for countries to accelerate the transition to renewable energy.
“Events like this are a wake-up call. Governments may increasingly prioritise renewable energy such as solar to reduce dependence on volatile fossil-fuel supply routes,” she said.
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March 06, 2026, 08:16 IST
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