The transatlantic tariff war is having a profound impact beyond the EU’s borders, compelling iconic Swiss brands known for precision manufacturing, like Victorinox, to shift production to the United States. This move is a calculated business decision to circumvent costly duties on European exports.
Along with chocolate maker Lindt, Victorinox—the producer of the famous Swiss Army knife—has announced plans to onshore part of its production. This is a significant strategic pivot for a company whose brand identity is deeply intertwined with its Swiss origins. It signals that the current trade environment is so challenging that even the most established European brands are reconsidering their global footprint.
This trend is driven by simple economics. By producing within the US, these companies can sell directly to American consumers without incurring the new 15% tariff. It’s a way to de-risk their business from the volatility of trade politics and protect their market share in the world’s largest economy.
The decisions of these Swiss firms are a bellwether for other high-end European manufacturers. They demonstrate that the new trade framework, far from resolving tensions, has solidified a protectionist reality that makes direct investment in the US a more attractive option than exporting from Europe. This could lead to a long-term brain and job drain from the continent’s specialized manufacturing sector.