Turning pricing pressures and a strong Swiss franc into competitive advantage

Amid current geopolitical turmoil, the greatest pitfall would be to consider new threats as a mere cost crisis. Success will require a decisive, coordinated, 360-degree response that strikes at the core of your operating, commercial, and financial model.

A different reality across industries

Not all sectors are impacted equally.

• Pharma and raw or refined gold players still enjoy a temporary reprieve.
• For others, the impact of new U.S. tariffs at 39% is immediate and also affects their Swiss suppliers.

According to Swissmem, Swiss manufacturers in machinery, electronics, and metals have already seen orders decline by 13.4% in Q2, leading to 3,100 job losses – even before the official announcement of the tariff hike.

Similar patterns emerge elsewhere:

• Economiesuisse projects negative growth in the agri-food sector as early as 2025.
• Even pharma, technically spared from tariffs, recorded a 5.3% drop in Q2 according to SECO.

The reasons? A compromised U.S. market, a struggling Chinese economy, and a 19.2% plunge in exports in May 2025 versus year ago (Observatory of Economic Complexity). All this in a context where the strong Swiss franc has weighed heavily for several years.

An opportunity to reinvent, not just survive

The challenge is not merely to cushion the immediate impact, but to turn constraints into a catalyst for sustainable competitiveness.

Some firms, like Victorinox, anticipated tariffs by reinforcing U.S. inventories. Yet the time gained must now be used to build a robust strategy, as CEO Carl Elsener reminded in PME Magazine (September 2025).

In the short term, the most common reactions are well known:

• 70% of Swiss companies have already frozen or delayed investments (according to Ernst & Young).
• 80% of Swissmem members plan to explore new markets.
• 37% are considering layoffs.
• 28% are preparing for short-time work.

But the most resilient companies do not treat this as a simple temporary pricing crisis. They choose a strategic global response that creates long-term competitive advantage.

Example: On Running. The Zurich-based company combined:

• a $10 price increase on certain model,
• the development of a direct-to-consumer channel,
• strengthened logistics efficiency,
• and premium positioning reinforcing de Swiss quality.

A hybrid short- and long-term strategy that illustrates a winning response.

Quiz: Assess your response capacity to the double shock of US tariffs and the strong franc.

3 leviers pour préparer votre riposte stratégique

1) Optimiser votre chaîne de valeur

Rethink your operating architecture to strengthen resilience:

• Aim for a natural financial hedge by balancing revenues and costs in CHF, USD, and EUR.

Industrial and logistics reconfiguration

Smart mapping of flows enables a distributed, resilient ecosystem that accounts for exchange rates and tariffs. Key considerations include:

• proximity to priority markets of high volume or margin products,
• geographic optimization aligned with economic differentials,
• stock management adapted to local demand,
• product portfolio adjustments,
• integration of local suppliers,
• and semi-knockdown (SKD) assembly to circumvent tariffs without sacrificing Swiss made standards.

Sourcing optimization

A strong franc creates leverage to renegotiate with European and Asian suppliers. Depending on the case, widening or rationalizing the supplier base will help balance agility, efficiency, and cost control.

Operational excellence

• Identify processes ripe for automation.
• Eliminate non–value-adding activities and reallocate resources.
• Redefine departmental structures and build new capabilities.

2) Adapt your commercial strategy

The response must combine pricing sophistication with geographic diversification.

Differentiated pricing

Refine pricing by segment, track competitors’ moves, and optimize profitability across client portfolios.

Geographic diversification

Reignite exploration of alternative markets (Asia-Pacific, Africa). Tailor products to local needs and reduce U.S. dependence through targeted expansion.

Customer experience innovation

Reassert the value of Swiss made—by clarifying what it truly means. But go further: focus on lived customer experience, a more differentiating factor that justifies premium pricing more effectively than technology alone.

3) Crisis governance and financial discipline

Resilience must be orchestrated through agile governance.

Cross-functional war room

Establish a steering committee bringing together sales, production, finance, logistics, R&D, and marketing. Assign your best talent to ensure coordination and execution speed.

Agile planning & steering

Abandon rigid five-year plans. Implement adaptive planning, supported by a strong PMO and 10–12 real-time KPIs.

Cash management

Go beyond margins and revenues: model geopolitical impacts, monitor their effect on KPIs, and adjust FX hedging strategies to transform uncertainty into informational advantage.

Orchestrating the response: your ultimate strategic differentiator

Victory will not come from any single lever, but from the fast, coherent orchestration of all three dimensions: value chain, commercial strategy, and governance. Operational excellence is no longer about optimizing the existing—it is about reinventing value creation in the face of today’s geopolitical challenges.

Reacting to tariff pressures and a strong franc must not be limited to defensive measures. It is an opportunity to rethink business models, strengthen market positions, and build lasting superiority. Companies that turn urgency into strategic response will emerge stronger and better equipped to face the uncertainties ahead.

5 critical success factors

1. Committed executive leadership
   Visible C-level sponsorship is non-negotiable; without it, failure rates reach 70%. Top management must lead transformation directly and involve middle management.
2. Smart sequencing
   Start with quick wins (automation, sourcing) delivering results within 6 months before tackling heavier diversification projects.
3. Robust indicators
   6–8 critical lagging KPIs with automatic alert thresholds, tracked weekly to avoid costly drifts.
4. Dedicated cross-functional teams
   A task force of your top talents with a discretionary budget to act fast.
5. Intensive communication
   Update teams every two weeks to sustain momentum and accelerate adoption of new practices.