Swiss foreign trade experienced a downturn in February, following a mixed start to the year. Exports declined by 2.7% month-over-month, while imports recorded a fourth consecutive decrease since November. A notable exception to this trend was a surge in shipments to the United States, offering a bright spot in an otherwise softening economic picture. This shift in trade dynamics, particularly the resilience of exports to the U.S. Market, is a key development for the Swiss economy as it navigates global economic headwinds.
The Federal Customs Administration (OFDF) reported that seasonally adjusted exports weakened to 22.21 billion Swiss francs in February. While the decline was 2.7%, the real terms – adjusted for inflation – showed a more modest contraction of 0.3%. This brings Swiss exports to their lowest level since March 2024, continuing a largely flat trend over the past ten months. The data underscores a period of uncertainty and subdued growth in key sectors of the Swiss export economy.
Imports fell more sharply, dropping 8.3% to 17.8 billion Swiss francs. Adjusting for inflation, the decrease was 5.1%, accelerating the downward trend observed since October 2025. Despite the decline in both exports and imports, Switzerland’s trade surplus increased for the second consecutive month, growing by approximately 1 billion Swiss francs to reach 4.44 billion Swiss francs. This suggests that while overall trade volume is decreasing, the country maintains a strong position in terms of export competitiveness.
Horological Industry Remains a Strong Performer
Across most sectors, exports experienced a broad-based decline in February, with nine out of ten merchandise groups reporting a decrease. The exception was the watch industry, which continued to demonstrate resilience and growth. As Switzerland’s leading export sector, the chemical-pharmaceutical industry saw its deliveries fall by 3.1% to 11.07 billion Swiss francs, representing the largest nominal decline. The machinery, electronics, and devices industry, the second-largest contributor to Swiss exports, too experienced a decrease of 2.6% to 4.38 billion Swiss francs.
The watch industry, however, bucked the trend, shipping goods worth 2.18 billion Swiss francs – a 1.3% increase compared to the previous month. This confirms a positive trend observed over the last five months, according to the OFDF. Exports of jewelry and other articles of jewelry decreased by 2.6%, but remained above the 1 billion Swiss franc mark (1.03 billion Swiss francs). This continued strength in the watch sector provides a crucial buffer against broader economic slowdowns.
Other sectors experiencing declines included metals and metal products (-5.7% to 780 million Swiss francs), textiles, clothing, and shoes (-7.9% to 340 million Swiss francs), and plastics (-5.6% to 267 million Swiss francs). Exports of food, beverages, tobacco, and electricity remained relatively stable.
Looking at key markets, North America was the only region to observe increased shipments, jumping 19.4% to 4.12 billion Swiss francs. This growth was largely driven by a 21.2% increase in deliveries to the United States, reaching 3.85 billion Swiss francs. Exports to Europe, however, decreased by 3.5% to 13.01 billion Swiss francs, despite a significant surge in activity with Belgium (+88.7% to 761 million Swiss francs), which was not enough to offset declines in Austria, Germany, Spain, Italy, and Slovenia. Exports to France increased by 6.5% to 1.24 billion.
Challenges in Asia, Particularly with China
Shipments to Asia also contracted, falling by 12% to nearly 4 billion Swiss francs, primarily due to a 19.6% decrease in exports to China, reaching 1.02 billion Swiss francs. However, deliveries to Japan (+6.1% to 622 million Swiss francs), Singapore (+6.6% to 297 million Swiss francs), and India (+6.4% to 174 million Swiss francs) all increased. The weakening demand from China, a major global economic player, presents a significant challenge for Swiss exporters.
On the import side, the February decline was largely attributed to a decrease in chemical and pharmaceutical products (-23.5% to 5.39 billion Swiss francs), with medicine imports plummeting 31.9% to 2.63 billion Swiss francs. Conversely, imports of vehicles and energy products increased by 6.1% and 9.7%, respectively. These shifts in import patterns reflect changing demand and supply dynamics within the Swiss economy.
The U.S. Remains a key trading partner for Switzerland, as evidenced by the substantial increase in exports. According to the Swiss Federal Department of Foreign Affairs, questions regarding import regulations and tariffs on Swiss imports imposed by the United States should be directed to the U.S. Customs and Border Protection (SECO). Recent changes to U.S. Trade policy, including the potential application of a 10% tariff on all imports, are being closely monitored by Swiss officials. The possibility of allowing “chlorinated chicken” from the U.S. Into the Swiss market is also currently under negotiation by the Swiss Federal Council (Le Temps).
Looking ahead, the OFDF will continue to monitor trade flows and provide updated data on the Swiss economy. The next set of trade figures, covering the month of March, will be closely watched for signs of stabilization or further decline. The evolving global economic landscape and ongoing trade negotiations will undoubtedly continue to shape Switzerland’s foreign trade performance in the months to reach.
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