Export Market USA Crumbles

MEM SMEs Fight Back With Innovative Strength Export Market USA Crumbles

2025-09-26 Source: Press release | Translated by AI 1 min Reading Time

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Since the introduction of the 39 percent US tariffs on Swiss products in August 2025, the situation for export-oriented SMEs in the MEM sector has further deteriorated. A new survey by BAK Economics on behalf of Swissmechanic shows: The tariffs are already taking effect—but the industry is not remaining idle.

Nearly three out of four MEM SMEs are directly or indirectly dependent on the US market. 45 percent of the surveyed companies already report a deterioration in order volumes.

Despite the challenges, Swiss MEM SMEs are once again demonstrating their resilience. They respond quickly and strategically using a proven set of tools: diversification, innovation, and efficiency improvements. Most commonly, companies focus on entering new markets (27 percent), cost reductions (23 percent), and short-time work (23 percent).

"The situation is serious—but not hopeless," says Erich Sannemann, Director of Swissmechanic. "Our companies have already proven in past crises that they can remain competitive under pressure with pragmatism and an innovative spirit."

Innovation is Key

Last week, the World Intellectual Property Organization once again awarded Switzerland the title of the world's most innovative economy in the Global Innovation Index 2025. Swiss industrial companies enjoy an excellent reputation worldwide as technology leaders—and in economically challenging times, they consistently align their strategies with this strength. This also applies to MEM SMEs: Product innovations and the exploration of new markets, in addition to efficiency improvements, are considered particularly effective for sustainably strengthening their resilience.

Politics is Required

The study shows that MEM SMEs are very adaptable and respond quickly to changing conditions. Swissmechanic now also sees politics as being called upon: In addition to short-time work compensation as a proven crisis instrument, improved market access, the reduction of regulatory hurdles, and investments in education and innovation are key levers for strengthening competitiveness.

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