At first glance, Donald Trump’s aggressive trade policies, steep tariffs, protectionist rhetoric, and a hardline bargaining strategy might appear likely to drive foreign businesses away. And yet: almost no one leaves the American market. Why? Because no other economy has such a gravitational pull. And it’s not a recent phenomenon.
America fascinates. More than that: it attracts, absorbs, and finances.
🍫 A Box of Chocolates… and a Lesson in Economic Geopolitics
Swiss chocolatier Bachmann has recently decided to halt its exports to the U.S., following the Trump administration’s announcement of a 39% tariff on Swiss goods, effective August 7. “This is not a financial decision, it’s a statement,” said CEO Raphael Bachmann on LinkedIn. But let’s be honest: if the American market had been a pillar of survival for the company, this stance would have come at a much higher cost—and probably wouldn’t have been taken.
👉 Takeaway: Defiance is only sustainable when the U.S. market is optional. If it’s core to a business model, pragmatism, not protest, becomes the strategy.
💰 The Two Engines of American Magnetism: Consumption & Capital
The real strength of the U.S. lies in its unique ability to generate and attract two key drivers of capitalism:
- Massive domestic demand (consumption)
- Abundant capital (investment)
We often hear that the European Union is the largest market in the world. That’s true, on paper. In practice, the EU is hindered by:
- Linguistic and cultural barriers
- A fragmented capital market
- Regulatory complexity and slowness
By contrast, the U.S. offers:
- A fluid, unified, and massive market
- Easy access to funding
- A strong culture of risk-taking and growth
📈 Why Companies Still Choose Wall Street
Several Swiss companies like On Holding AG (Footwear), Sportradar Group AG (Sports data & betting – technology), SOPHiA GENETICS, VectivBio, Molecular Partners, NLS Pharmaceutics (all Biotech/MedTech) have opted for U.S. direct listings. Why? Because securing growth capital, especially in BioTech, MedTech, and Technology, is nearly impossible at this scale elsewhere.
Key stat:
- 💸 $100 billion in global venture capital was raised in Q2 2025
- 70% of that came from the U.S.
Even early-stage European startups instinctively look to Silicon Valley or Boston when raising their Series B, C, or D rounds. In much of Europe, the venture and growth capital ecosystem within seed and Series A is thin to nonexistent. And even when corporate investors show initial interest, the due diligence timelines, CIS compliance hurdles, geographic and language limitations, and bureaucratic inertia often mean that by the time a deal is processed, the underlying technology has already moved on — a lesson learned the hard way.
🔍 American Resilience, Even Through Crises
Think back to 2008: the subprime mortgage crisis, record unemployment, mass bankruptcies. Many predicted the end of the American economic model. Yet during this very period:
- Google solidified its dominance
- Amazon expanded globally
- Tesla prototyped its first cars
- The GAFAMs became the giants we know today
➡️ Result: According to the 2024 Draghi Report on European Competitiveness, the GDP gap between the U.S. and the EU grew from +15% in 2002 to +30% in 2023. The divide is widening.
🐉 And What About China?
China remains the only true economic rival to the U.S., but:
- It struggles to build a stable middle class
- It faces a structural economic slowdown
- It maintains an opaque regulatory environment
Even in trade conflicts, Beijing reacts to Washington, not the other way around. Washington still sets the global tempo.
🧭 Strategic Note – What States and Businesses Should Remember
✅ For European and Swiss Governments:
- Accelerate regulatory simplification
- Build a true capital market
- Champion international expansion
- Rebalance transatlantic relations
✅ For Businesses:
- Plan a local U.S. presence to bypass tariffs
- Pursue U.S. growth capital, especially in biotech, cleantech, and deeptech
- Monitor U.S. consumer behavior, it remains the compass of global capitalism
- Account for U.S. political risk, but don’t turn away
The Brazil–India Parallel: When Saying “No” Comes at a Cost
America’s economic magnetism becomes even more apparent when countries try to resist it, …..and struggle.
Brazil has refused to negotiate with Trump over the newly imposed 50% tariffs, citing sovereignty and dignity. President Lula called direct talks a “humiliation” and opted for BRICS coordination and WTO challenges instead. While principled, Brazil’s exporters now face the risk of:
- Massive economic fallout
- Diplomatic isolation
- Investor unease
- Unreliable multilateral support
This strategy is feasible for Brazil because the U.S. is not its primary trading partner. It’s a high-stakes standoff, but with less immediate economic dependence.
India, by contrast, may not have that luxury. With the U.S. as its #1 export market, worth $86.5 billion annually, India is also facing a 50% tariff starting August 27. The penalties, triggered by Delhi’s Russian oil purchases, could devastate labour-intensive sectors like textiles and jewelry, with GDP growth projected to dip below 6%.
India’s situation is more precarious:
- Multilateral channels (BRICS, WTO) offer limited leverage
- Strategic partnerships with the U.S. (in defense, tech, and supply chains) are too valuable to risk
- Investor sentiment and its “China-plus-one” appeal could suffer long-term damage
👉 Lesson: Defiance may look bold, but the cost of isolation from the U.S. market can be crippling, especially for economies that rely on it.
🎯 Conclusion: The American Dream is Still a Strategy — Not a Myth
Trump’s tariff bombs may be loud, but they don’t shift the fundamentals. The United States remains the world’s economic epicenter, a source of demand, capital, innovation, and global consumer culture. For companies and countries alike, resisting the U.S. market is not a real option unless you’re willing to pay a very high price.
🚀 So whether you’re a Swiss chocolatier, a Brazilian exporter, or a rising Indian tech firm, the answer isn’t retreat. It’s resilience, presence, and smart integration into the American engine.
What Should a Swiss Investor Make of This?
For Swiss investors to optimize their asset allocation strategy, this analysis offers several important takeaways:
- Maintain a meaningful allocation to U.S. equities and venture/growth capital
The U.S. remains the unrivaled global engine for innovation, consumption, and capital formation. Its unified market structure and risk-taking culture provide unique growth opportunities, especially in sectors like biotech, cleantech, and technology, where European markets lag.
- Diversify across sectors and stages, but recognize the U.S. dominance in late-stage growth funding
Many European startups must turn to the U.S. for start-up capital and beyond. For risk-tolerant investors, seeking exposure to U.S.-listed companies and venture capital funds can capture this dynamic growth cycle.
- Account for geopolitical and regulatory risk pragmatically, not as a reason to avoid the U.S.
While tariffs and trade tensions exist, historical resilience shows that U.S. economic fundamentals prevail. Investors should incorporate scenario analysis but avoid knee-jerk retreats from the U.S. market.
Take-away:
The EU and Swiss markets face very high fragmentation and slow regulatory processes. Long-term efforts to improve these areas should continue, but not at the expense of losing U.S. market exposure.
In essence, Swiss investors should view the U.S. market not just as an asset class but as a vital partner in achieving sustainable, long-term returns. Resistance or disengagement may seem principled, but could come at a high economic cost. Instead, resilience and smart integration remain the prudent path forward.