Swiss Army knife manufacturer Victorinox is considering moving some of its production processes to the United States to alleviate the impact of increased tariffs imposed by the United States.
CEO Carl Elsener revealed in an interview with the German magazine WirtschaftsWoche that the company is exploring conducting final product cleaning and packaging processes in the US. This move is estimated to reduce the taxable value of goods by 10% to 15%.
Earlier this month, US President Trump significantly raised tariffs on Swiss imports, reaching up to 39%, covering categories such as knives, machinery, watches, and chocolates. The US is an important export market for Switzerland, with approximately 13% of Victorinox’s revenue coming from the US. Elsener acknowledged that the tariffs come at a difficult time with the strong Swiss Franc and pressure on profits, posing a significant challenge to their competitiveness. However, due to high US inventory levels, the new tax rates are not expected to have a substantial impact on the company until early next year.
Founded in 1884, Victorinox is renowned for producing Swiss Army knives, later expanding its product line to include commercial knives, watches, and travel gear. The company is still family-owned and operated, with “Swiss made” as a core brand. Elsener emphasized that even if some processes are moved to the US, the core manufacturing of Swiss Army knives will remain in Switzerland.
Amid Trump’s new trade policies, an increasing number of European manufacturers are adjusting their production and investing in the US to boost employment and supply chain development. So far this year, German automotive giant Volkswagen, Swedish furniture retailer IKEA, and some Japanese component suppliers have all announced plans to expand production capacity in the US, with Victorinox being the latest case.
Since returning to the White House in February of this year, Trump has repositioned his trade policy to “reshape fair order.” He believes that the US has endured excessive trade deficits, with foreign countries benefiting from lower tariffs and subsidies, leading to unequal advantages. Therefore, he has implemented a global high-tariff strategy.
The US Treasury estimates that the new tariffs could generate billions of dollars in additional monthly revenue, which will be used to offset the fiscal gap caused by tax reform.