NextFin news, On Sunday, September 21, 2025, Swiss company Victorinox, renowned for its Swiss Army knives, confronted a significant challenge after the United States imposed a 39 percent tariff on Swiss imports, the highest tariff rate on any Western country, announced by President Donald Trump last month.
The tariff, which took effect recently, has forced Victorinox and other Swiss exporters to reconsider their production and export strategies. The company, headquartered in Ibach-Schwyz, Switzerland, is now evaluating whether manufacturing Swiss Army knives in the United States could help circumvent the tariff while raising questions about the product's Swiss identity.
Carl Elsener Jr., CEO of Victorinox, expressed surprise at the tariff's severity, noting that the company had expected a more moderate tariff similar to those imposed on the European Union (15 percent) or Britain (10 percent). He highlighted the United States as Victorinox’s most important market, emphasizing the tariff's disruptive impact on longstanding trade relations.
The tariff is expected to increase Victorinox’s U.S. import tax bill by approximately $13 million next year. This financial burden may lead to higher retail prices in the U.S., making Swiss products less competitive compared to European rivals. Additionally, the new customs procedures have complicated the import process, adding administrative challenges.
Jan Atteslander, director at EconomieSuisse, the Swiss business lobbying group, stated that the tariffs are severely affecting Switzerland’s export-oriented economy and called for swift negotiations to reduce the tariff burden.
Beyond Victorinox, other Swiss companies are also feeling the pressure. Some are considering relocating production either to the United States or within Europe to mitigate tariff impacts and currency fluctuations. For example, Swiss medical technology firm Ypsomed is exploring shifting some production to Germany.
Swiss banks and financial institutions are similarly adjusting operations to address currency mismatches exacerbated by the tariffs and dollar weakness. Julius Baer and EFG International have reported significant negative currency impacts and are shifting some operations to lower-cost service centers abroad.
Switzerland is actively negotiating with Washington to seek tariff reductions. However, uncertainty remains, with some companies like aircraft manufacturer Pilatus halting exports to the U.S. until a resolution is reached.
This tariff escalation is part of a broader pattern of U.S. trade policy under President Trump, which has included increased tariffs on various European countries, affecting multiple industries and prompting strategic shifts in production and trade.
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