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Press release
26 Aug 2025
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Zurich, Switzerland
Tariff policies and geopolitical uncertainty are a challenge for Switzerland as a business location
- 70% of companies in Switzerland have stopped or postponed investment as a result of geopolitical and trade uncertainty.
- Nevertheless, the number of investment projects announced by foreign companies in Switzerland rose by almost 25% in 2024, with investment from the United States increasing by as much as 69% compared with the previous year.
- Stable framework conditions and locational advantages such as legal certainty and innovative strength are becoming increasingly important.
Zurich, 26 August 2025 - Swiss companies are facing mounting risks in an increasingly difficult international environment. Geopolitical tensions, protectionist measures and tax reforms are putting the brakes on investment and complicating strategic decisions. Recent analysis by EY shows that 70% of companies in Switzerland have stopped or postponed investment as a result of geopolitical and trade uncertainty.
The latest US trade policy measures, including tariffs of up to 39% on Swiss exports, are particularly significant. This poses structural challenges for companies with strong sales markets in the United States – not least because globally interconnected supply chains can rarely be modified quickly.
“The tariffs being imposed by the United States are just one example of how geopolitical tensions directly impact the strategic reality of Swiss companies,” said Daniel Gentsch, Chairman of the auditing and consulting firm EY Switzerland. “It is crucial to build resilient structures, develop scenarios and flexibly align strategic options to a changing geopolitical situation, particularly in a highly networked market environment.”
Geopolitical uncertainty is also affecting the behavior of companies in the area of M&A. While almost half of Swiss companies (46%) are planning a merger or acquisition in the next 12 months, geopolitical uncertainty is leading to greater risk differentiation – especially in transactions with a link to the United States. Valuation uncertainty, regulatory requirements and possible tariff burdens now play a much bigger role in decision-making processes.
At the same time, Switzerland remains a sought-after location for international investors. The number of investment projects announced by foreign companies rose by almost 25% in 2024, with investment from the United States increasing by as much as 69% compared with the previous year. This success shows that stable framework conditions and locational advantages such as legal certainty and innovative strength are influential, even in times of geopolitical turmoil.
EY recommends that companies systematically incorporate geopolitical risks into their strategic planning, intensify their dialog with politicians and administrators, and develop flexible structures that enable them to adapt quickly to changing framework conditions.
“Switzerland must systematically strengthen its proven locational advantages, such as the liberal and reliable legal system, economic freedom and the protection of intellectual property,” Gentsch continued. “Making a hasty exit from international regulations or retaliating with knee-jerk measures would do more harm than good in the long term.”
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