EY Parthenon, the strategy and transaction advisory arm of EY (formerly Ernst & Young), published its CEO Outlook Survey on Tuesday. The perspectives of Swiss executives are of particular interest, as they now face U.S. tariffs of 39 percent on their exports. The findings are based on responses from 50 Swiss CEOs, mostly from listed companies, surveyed in August.

Unsurprisingly, geopolitics remains the top challenge, cited by 52 percent of respondents. Macroeconomic uncertainty follows at 42 percent - though the two are closely linked. Trade policy ranks third, at 34 percent, despite its clear ties to the geopolitical landscape. CEOs were asked to name up to three challenges.

International Concerns Differ 

The international results show a different picture: geopolitics and the economic outlook are considered less pressing, cited by 28 and 27 percent of executives respectively. Globally, risks related to technological disruption, artificial intelligence, supply chains, and sustainability are often rated higher.

Swiss companies are responding to geopolitical tensions and tariff barriers by establishing regional supply chains and producing goods locally in their target markets—a move very much in line with the protectionist stance of Donald Trump. Three-quarters of CEOs are already implementing localization measures or plan to do so soon. Four-fifths are committed to long-term regionalization of their supply chains.

M&A and Partnerships in Demand

Stefan Rösch-Rütsche, Country Managing Partner of EY in Switzerland, commented: «The sharp increase in tariffs on Swiss imports has taken many companies by surprise. This change poses risks to profit margins, disrupts supply chains, and jeopardizes relationships with U.S. clients. In light of a 39 percent tariff hike, it is critical for companies to act quickly and find tailored solutions.»

For EY’s own business, CEOs’ plans regarding mergers and acquisitions (M&A) are of particular importance. Two-fifths of respondents said they expect to carry out an M&A transaction in the next 12 months—pointing to strong demand for advisory services.

Even more popular are partnerships: «At the same time, Swiss executives are showing a strong preference for building strategic alliances, which offer the advantage of minimizing costs and conserving corporate resources,« the release stated.