How It Ticks: The Swiss Culture, Business & Life Podcast How Safe Is Switzerland in a Power-Based World Economy?
Nov 27, 2025
Jan-Egbert Sturm, Director at KOF Swiss Economic Institute and a leading macroeconomist, delves into Switzerland's economic resilience amid global trade shifts. He explains why US tariffs specifically impacted Swiss high-quality exports and discusses how firms are diversifying to adapt. The conversation also explores the complexities of the global debt landscape, highlighting why some nations sustain high debt while others falter. Lastly, Jan-Egbert addresses the challenges posed by an aging population and the implications of a potentially overvalued Swiss franc.
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Power Over Rules In Global Trade
- The global economic order is shifting from negotiated, rule-based systems to power-driven actions by large states.
- Jan-Egbert Sturm warns that major players like the US and China increasingly ignore negotiated rules, raising geopolitical economic risk.
Why Switzerland Was Targeted By Tariffs
- Switzerland faced large US tariffs partly because it is small and politically powerless in such disputes.
- Sturm also notes Switzerland's specialization in high-quality industrial goods makes it a direct target of protectionist US aims.
Diversify Markets And Production Footprints
- Firms should diversify markets and production footprints when facing persistent tariff uncertainty.
- Sturm observes Swiss companies relocate parts of production to Europe or shift focus to other markets to mitigate US tariff risk.