America could soon claim part of the production of the iconic Swiss Army knife, as Victorinox considers moving some of its operations to the United States in response to heavy import tariffs, according to a report in The Times UK.
Victorinox, which has manufactured the knives in Ibach, Switzerland since 1884, is weighing whether to relocate final processing steps such as cleaning and packaging to the US. Chief executive Carl Elsener told German magazine WirtschaftsWoche that such a move could reduce the value of goods subject to tariffs by about 10 per cent.
The Trump administration recently raised US tariffs on Swiss imports to 39 per cent, a significant blow to Swiss exporters of knives, watches, cheese, and chocolate. Victorinox, which derives about 13 per cent of its revenue from the US, faces added pressure from a strong Swiss franc that has already eroded margins.
Industry groups warn the tariffs could inflict serious damage on Switzerland’s economy, threatening jobs and forcing the Swiss National Bank to consider interest rate cuts. For now, Victorinox says high inventories will delay the impact until next year, but the company has not ruled out a partial US relocation if trade tensions persist.
