US midterm elections pose economic risks for Switzerland

The upcoming US midterm elections, involving 435 seats in the House of Representatives and 35 in the Senate, could significantly impact the Swiss economy. The outcome depends on which party gains control of both chambers of Congress.

Analysts suggest that a Democratic victory in both houses would be the most favorable scenario for Switzerland, as it would limit the foreign policy maneuverability of Donald Trump. Conversely, if Republicans maintain control of both chambers, the US president would have greater freedom to pursue his current trade agenda.

Economic experts, including Santosh Brivio of Migros Bank, note that the legislative outcome is particularly critical for Swiss sectors with substantial business operations in the United States, such as the pharmaceutical industry, mechanical engineering, and watch manufacturing. Historical tensions, including previous trade tariffs, highlight the sensitivity of the Swiss economy to US administrative decisions.