Business News March 2025 \ Issue #422
Inauguration day 2025 Trump takes office
GREETING FROM THE CEO
Trump 2.0.: Where are we heading and what is Swiss AmCham working on? Since returning to office, Donald Trump has upended economic, geopolitical, and domestic policies with maximal disruption. While many see chaos, this is, in essence, a fundamental reset of the existing system to establish a new one. Schumpeter called it the “creative destruction”. For me, the key question is: Will this attempt to reshape America, and with that (parts of) the world order, work and what is the endgame in mind? If it does not, we will find ourselves in a world with trade wars, geopolitical fragmentation, and ongoing global instability - without a clear indication whether we will go back to the old order or if a new equilibrium can be found soon. If successful, peace may be reached, the USA and the world economy will flourish, and stability could follow. However, every transformation comes with challenges, and only time will tell if the pain is justified. On an operational level, at the Swiss-American Chamber of Commerce we are focused on four key areas: i.) Understanding geopolitical shifts; ii.) Assessing the impact of tariffs on businesses in Switzerland and navigating them; iii.) Evaluating Trump’s rejection of the OECD minimum tax and Switzerland’s response; and lastly, iv.) Ensuring Switzerland is not disadvantaged in AI chip distribution. In each of these areas, we work – where appropriate - closely with member companies, business associations, and the Swiss and US governments to secure favorable outcomes that uphold Switzerland’s and its businesses interests.
Content of the newsletter
Event photos 2-3 Current issues 4-5
Event calendar 7 Member section 6
www.amcham.ch Swiss AmCham LinkedIn info@amcham.ch
Past Events - Timeless Connections
Jan 23, 2025, Davos: WEF Swiss-American Friendship Cocktail
Ellen Delman (Embassy of the United States of America U.S. Consular Agency Zurich); Jacqueline Hess (Vontobel Swiss Financial Advisers)
Jacques Ducrest (SECO); Helene Budliger Artieda (SECO); Rahul Sahgal (Swiss AmCham); Martin Schlegel (Swiss National Bank)
André Kudelski (Kudelski); Jean-Christophe Pernollet (Edmond de Rotschild)
Andreas Berger (Swiss Re); Karin Oertli (UBS); Thomas Wellauer (SIX)
Sandra Schnyder (Shaperion AG); Eunice Zehnder-Lai (American Swiss Foundation)
National Councilor Eric Nussbaumer; Rahul Sahgal (Swiss AmCham); Karin Oertli (UBS); Alexandre Fasel (FDFA); Ralph Heckner (Ambassador of Switzerland to the USA)
Reto Bleisch (Amt für Wirtschaft und Tourismus); Alexandre Fasel (FDFA); Isabelle Moret (Parliamentary Association Switzerland - USA)
Benjamin Tueck (Accenture); Raymund Gerardu (TPA Global); Denis Machuel (Adecco); Bettina Schaller Bossert (Adecco)
Thomas Wellauer (SIX); Enna Pariset (BNP Paribas); Riet Cadonau (Zehnder / Swiss AmCham)
Dominique Wohnlich (Goldman Sachs Bank); Piergiorgio Pradelli (EFG International); Manuel Rybach (EFG International)
Ralph Heckner (Ambassador of Switzerland to the USA); Marco Huwiler (Accenture); Rahul Sahgal (Swiss AmCham); Riet Cadonau (Zehnder / Swiss AmCham); Chargé d'Affaires Bradford Bell; Martina Hirayama (SERI); Alexandre Fasel (FDFA)
Stefan Bollinger (Julius Baer Group); Peter Friedli (Friedli Corporate Finance AG c/o Nouvag)
Past Events - Timeless Connections
Heike Birlenbach (Swiss International Airlines); Christine Antlanger-Winter (Google); Martina Hirayama (SERI)
Swiss AmCham CEO Rahul Sahgal presenting on WEF
Chargé d'Affaires Bradford Bell; Manuel Rybach (EFG International); Piergiorgio Pradelli (EFG International); Karin Oertli (UBS)
Ralph Heckner (Ambassador of Switzerland to the USA)
Marni McManus (Citibank); Rahul Sahgal (Swiss AmCham); Bruno Wirz (Korn Ferry); Sophie Bacq (IMD)
Roi Tavor (Google); Axel Lehmann; Jacques Sanche (Bucher Industries)
Marco
Huwiler
(Accenture);
Koen
Riet Cadonau (Zehnder / Chairman Swiss AmCham)
Andreas Berger (Swiss Re); Ambassador Erwin Bollinger (Swiss Permanent Mission to the WTO and EFTA); Martin Naville; Eric Nussbaumer (National Councilor)
Deryckere (Accenture)
Swiss AmCham San Francisco Chapter Xmas Event on December 11, 2024 Chapter Chairman Emeritus Stefan Welter (left) and Chapter Vice Chairman Bjoern Jeker (right)
Swiss AmCham San Francisco Chapter Xmas Event on December 11, 2024 Celebratory remarks by Ambassador Balz Abplanalp, Consule General of Switzerland in San Francisco
Swiss AmCham San Francisco Chapter Xmas Event on December 11, 2024 Chapter Chairman Boris Pavlovic addressing the attendees
Switzerland and the U.S.: Strong Partners Amid Change Switzerland faces challenges from escalating trade tensions. Rising costs and supply chain adjustments are inevitable. However, the U.S. is undergoing a transformation—reducing bureaucracy, keeping energy costs low, cutting taxes, and investing in technology, space, defense, and AI. Switzerland, as a European leader in these sectors, is well- positioned to benefit.
The Power of Tariffs The U.S. market is the largest in the world and the only major one that is growing. President Trump is leveraging access to this largest single market to achieve policy objectives. That’s what the tariffs are all about. In his first three weeks in office, President Trump signed more than 90 executive orders. Just one day after his inauguration, he signed the “America First Trade Policy” Executive Order, which requires several reports to be submitted to him by April 1, 2025. These reports include assessments of issues such as illegal migration and fentanyl flows from Canada, Mexico, and China, as well as the impact of the USMCA on American workers. The order also calls for a review of the causes of the country’s trade deficit and includes a study on currency manipulation. Although it seems chaotic from the outside, President Trump’s tariffs have clear policy objectives, i.e.: i.) Curb the migration and fentanyl flow into the United States (Canada, Mexico and China).
Source: NZZ, October 2024. “The cost of sanctions.” Switzerland is the 6th largest foreign direct investor in the U.S. and the number one in R&D. Swiss firms in the U.S. pay the highest average salaries among foreign investors ($131,100) and employ over half a million people across 4,000 locations. Bilateral trade is balanced, with the U.S. enjoying a substantial surplus in exporting services to Switzerland (think Microsoft, Google, etc.) and Switzerland with a similar surplus in goods (think machinery, pharmaceuticals, watches). Switzerland has abolished import duties on industrial goods, so 99% of all U.S. exports enter Switzerland duty free. The trade weighted average tariff for Swiss products to the U.S. lies at 2.2 % and vice versa at 1.7%. By maintaining this strong relationship, Switzerland is poised to flourish in the years to come.
Be transformative. Put the customer at the core of your business.
Learn more at pwc.ch/customer
AI Diffusion Rule In January 2025, the Biden administration announced that, starting in May, it would impose restrictions on the export of advanced AI chips. The Rule divided countries into different categories, with 18 "trusted countries" having unrestricted access to this technology in the future. Switzerland is not amongst those 18 countries, limiting access. No basis has been given for the categorization. Currently, it is unclear how the Trump Administration will handle Biden’s AI Diffusion Rule. Restricted access could severely impact Swiss and U.S. companies in Switzerland, particularly in AI research and development. Institutions like ETH Zurich and EPFL rely on these chips, and any limitations threaten innovation and technological collaboration. There are still many uncertainties surrounding the rules as they are complex and currently in a comment period. There are also many exception rulings that may be applied to Switzerland. The current comment period is therefore an opportunity.
ii.) Ensure a domestic manufacturing base for goods considered “national security” in case of a war, pandemic, or other crisis (chips, steel and aluminum, certain medicines, etc.). iii.) Stop countries from demanding higher import duties for U.S. products than vice versa (“fair and reciprocal”). iv.) Boost jobs and investments in the U.S. and v.) Generate revenue.
While some countries, like Switzerland, are highly dependent on export (75% of GDP), the U.S. has more leverage due to its relatively lower dependence on international trade (12% of GDP) since it is home to the world’s largest domestic market. It is clear that tariffs increase global economic uncertainty and the cost of doing business. Also, they could act inflationary in the short run – one of President Trump’s key campaign concerns. The ultimate impact remains uncertain, as some tariffs may be negotiation tools rather than permanent measures and – generally - tariffs are economically inefficient tools. Source: The Economist, January 2025. “Do tariffs raise inflation?”
Source: AI Whitepaper - Greater Zurich Area, September 2024.
CSRD in focus Navigating the new reporting standards The EU’s Corporate Sustainability Reporting Directive (CSRD) significantly increases Swiss companies’ non-financial reporting requirements. It is more than just a mandatory exercise and offers an opportunity to transform your company sustainably for the future. We’re here to accompany you each step of the way. Scan the code to find out more Deloitte.com/ch/CSRD
NEW MEMBERS
CH
USA
Bunge Davidoff Law
Aprio Advisory Group Giorgetti Athletics Global Creative Associates Helvetas USA
Ethno & Company FinTrust Partners Fischer Reinach Fresenius Medical Care Koenig & Bauer Banknote Solutions L.E.K. Consulting mb-microtec Medorg Niconsult Schweiz PureFert Trading Rinco Ultrasonics Suter.Legal. Vanguard Investments Switzerland
Holycode Joe Tools Kelley Drye Warren Knobbe Martens Levita Magnetics Memoria Mimacom USA
OMS360 Ooverse Pivotal Design Virginia Economic Development Partnership
MEMBER OFFERS If your company is interested in placing an advertisement, feel free to reach out to Leyla Schreiber at leyla.schreiber@amcham.ch to explore the available opportunities.
Event Calendar
Fireside Chat with Andreas Berger, Group CEO, Swiss Reinsurance Company & André Hoffmann, Vice Chairman, Roche Holding Zurich, Haus zum Rüden 5:30 pm – 7:00 pm May 20, 2025 Silicon Valley meets Switzerland: The Impact of AI on Business Functions in Switzerland Zurich, Swiss Re 1:00 pm – 6:00 pm May 21, 2025
Visit to Breitling Then & Now Pop- up Museum Rennweg 14/16, Zurich 5:30 pm – 7:15 pm Mar 20, 2025 Swiss Expansion in the USA: Navigating Strategic Growth Amid Geopolitical Change Zurich, Zunfthaus zur Meisen 5:30 pm – 7:30 pm Mar 26, 2025 Fireside Chat with State Secretary Alexandre Fasel , Swiss Federal Department of Foreign Affairs Zurich, Zunfthaus zur Waag 5:00 pm – 7:00 pm Apr 03, 2025
Swiss Miami Golf Open 2025
Florida , Crandon Golf at Key Biscayne 9:30 am – 3:30 pm May 9, 2025
You will find more information and events on our website - see more
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