Swiss industry sees small recovery after tariff-hit 2025

ZURICH, March 2 (Reuters) - Swiss industry is seeing small signs of a recovery after suffering from "horrendous" tariffs imposed by U.S. President Donald Trump in 2025, the sector's trade association said on Monday.

Shipments to the United States, the second-biggest market for Swiss machinery and precision instruments after Germany, fell 7.6% in 2025, Swissmem said, after Washington imposed steep import duties on Swiss products.

Exports to China, the third-biggest market, dropped 11.2%, contributing to a difficult year for the sector which contributes around 12% of Swiss economic output.

Growth in shipments to Japan and Europe compensated, with total exports rising 0.7% to 68.1 billion Swiss francs ($88.59 billion), but jobs were still lost among industrial companies, with the numbers employed falling 2% to 322,900.

"2025 was a lost year for the Swiss tech industry," said Martin Hirzel, president of Swissmem, whose members include engineering groups ABB and Siemens, and lift maker Schindler.

"However, companies have performed very well in the face of a brutal environment characterised by horrendous U.S. tariffs and a global reluctance to invest."

One positive was a recovery in new orders, which rose by 5.0% at the last three months of 2025, after falling 2.3% in the first half of the year.

The mood among companies has also improved slightly, with 32% of firms expecting a better order intake from abroad in the next 12 months, up from 24% at the start of 2025.

Hirzel said it was not possible to say whether this positive trend would continue, citing the uncertain global situation, unpredictable U.S. tariff policy and the strong Swiss franc, which makes Swiss exports more expensive.

"The challenges and risks remain substantial," Hirzel said.

($1 = 0.7687 Swiss francs)