Swiss Textile Machinery Faces Market Pressures Amid Strong Franc and High U.S. Tariffs

Singapore — During ITMA ASIA + CITME Singapore 2025, Cornelia Buchwalder, Secretary General of Swiss Textile Machinery, outlined the major challenges currently affecting Swiss textile technology exporters, highlighting a combination of global demand slowdown, U.S. trade barriers, and currency pressures.

Buchwalder emphasized that while many challenges are shared across the global textile industry, Switzerland faces a unique set of additional hurdles placing significant strain on competitiveness.

High U.S. Tariffs Create Unequal Playing Field

One of the most pressing issues is the 39% tariff imposed on Swiss textile machinery entering the United States—one of the highest tax burdens applied to any exporter in the sector.

“Switzerland currently pays 39% taxes on machinery exported to the U.S.,” Buchwalder stated. “Our neighboring countries—our main competitors—face much lower tariffs, which puts Swiss companies at a clear disadvantage in the American market.”

She noted that the tariff gap is already affecting customer decisions, reducing Swiss visibility in one of the industry's most important markets.

Strong Swiss Franc Intensifies Pressure

In addition to tariffs, the Swiss franc’s continuing strength against both the euro and the U.S. dollar remains another significant barrier.

“The currency is very strong, and it is becoming stronger again,” she explained. “This makes Swiss machinery more expensive globally and adds another layer of challenge to exporters already facing reduced demand.”

Global Demand Remains Weak Across the Textile Sector

Worldwide demand for textile machinery remains soft, with many manufacturers delaying investments due to economic uncertainty.

“Lack of demand is still the biggest obstacle for everyone,” Buchwalder said. “It affects the entire machinery industry, not only Switzerland.”

Supporting Members Through Regulation and Sustainability Shifts

With the European Union implementing extensive new sustainability regulations—such as eco-design, energy-efficiency frameworks, circularity requirements, and digital product passport initiatives—Swiss Textile Machinery is playing an increasingly critical role in guiding its members.

“We help our members gather information, understand legislative changes, and adapt their processes,” Buchwalder noted.
“These regulations primarily target the European textile industry, but they also directly impact textile machinery manufacturers.”

The association also offers company-specific consultancy, enabling manufacturers to work with external experts to evaluate their sustainability performance, digital transformation, and operational efficiency.

Why Switzerland Remains Competitive Despite High Costs

Despite high operating costs and external pressures, Switzerland continues to maintain a strong global position in textile machinery. Buchwalder attributes this resilience to several structural strengths:

Agility and Innovation Culture:
“Being a small country, companies have always needed to redefine themselves and stay agile.”

World-Class Apprenticeship System:
Switzerland’s dual training system provides factories with young technicians who develop skills directly on the production floor.

Strong Academic Ecosystem:
Technical universities, including the globally recognized ETH Zurich, produce engineers with the expertise needed to support the country’s high-tech machinery industry.

“These pillars make it possible for Swiss companies to remain competitive in such a challenging global environment,” Buchwalder added.

Swiss Commitment to Innovation Continues

Despite current headwinds, Swiss textile machinery manufacturers remain committed to supplying cutting-edge technologies for spinning, weaving, finishing, and advanced textile processing worldwide. Buchwalder reaffirmed the sector’s long-term dedication to sustainability, automation, and digitalization as the industry moves toward a smarter and greener future.