NextFin news, On Saturday, Swiss major corporations reported strong financial results for the first half of 2025 despite the tariff measures imposed by the United States. The news was released from Switzerland, where companies such as ABB, Novartis, and UBS exceeded analysts' expectations, according to a report by blue News published on Saturday evening.
The tariffs, initiated by former US President Donald Trump and implemented on Swiss imports starting in early August, impose a 39% duty. Despite this, the majority of the 21 companies listed on the Swiss Market Index (SMI) posted better-than-expected figures for the first six months of the year.
ABB, a leader in electrical engineering, Novartis, a pharmaceutical giant, and UBS, a major banking institution, were among the top performers. Other companies like Swisscom and Holcim met expectations, while Sika and Geberit fell short of forecasts.
Experts, including Arthur Jurus, investment director at Oddo BHF Suisse, explained that the impact of tariffs is limited because most SMI companies have production facilities in the United States, reducing direct exposure to tariffs, which affect only 1 to 2 percent of revenues. Additionally, pharmaceuticals remain exempt from tariffs for now.
Companies have also prepared for the tariffs by stockpiling goods in the US, especially in the luxury sector, to mitigate disruptions. The Swiss government is actively negotiating tariff exemptions, and market observers anticipate possible easing of the measures.
Stefan Meyer, equity economist at UBS, described the first half of 2025 as "overall robust" for Swiss companies, supported by solid organic sales growth, broad global market presence, and strict cost control. He noted that healthcare, the sector most affected by US economic policy changes, remains exempt from tariffs, and many companies manufacture products sold in the US locally.
Despite the positive first half, economic indicators are mixed. The KOF Institute's barometer declined in August, reflecting concerns about exports and business outlook following the tariff introduction. However, the Purchasing Managers' Index (PMI) showed stabilization in industrial and service sectors, albeit at low levels.
Economists expect Switzerland's gross domestic product (GDP) to grow by 1.2% to 1.3% in 2025, following a 0.9% increase in 2024. The outlook for 2026 remains cautious but positive.
In summary, while Swiss companies have so far defied the impact of US tariffs in the first half of 2025, the second half of the year is expected to be more challenging due to the full effect of the 39% tariffs on Swiss imports effective since August.
Source: blue News, September 13, 2025
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