HomeEconomyDue to 39%customs duties, the Swiss Victorinox knife manufacturer could relocate part...

Due to 39%customs duties, the Swiss Victorinox knife manufacturer could relocate part of its production in the United States

The company’s CEO said that a relocation of production a few days ago “was not an option,” said “certain stages” of production in the United States.

The manufacturer of Swiss knife Victorinox plans to relocate part of its production in the United States to reduce the impact of customs tasks on their activity, said Carl Elsener, CEO of the family business, in an interview published in the economic magazine Wirtschafttswoche on Tuesday, August 19.

“We plan to carry out certain stages of treatment of the chain directly on the site, such as cleaning and packing of kitchen knives,” said Carl Elsener.

Just a week ago, the CEO of the Swiss knife company still said that “relocating production abroad, particularly for pocket knives, is not an option.”

The Swiss economy undermined by customs tasks

The United States has imposed customs tariffs at the beginning of the month of 39% in imports of Switzerland, which puts the economy of the country with a strong exporter.

The United States is in particular a key market for Swiss watches and chocolate.
Victorinox, which manufactures kitchen knives and its famous pocket knives, generates about 13% of its turnover in the country. American customs duties are added to the difficulties caused by the vigor of the Swiss Franc.

The CEO, however, added that Victorinox’s high actions in the United States guaranteed that customs tasks would not affect the group before the beginning of next year. In 2024, Victorinox achieved a turnover of 417 million Swiss francs (442 million euros at the current rate).

Author: P.The with AFP
Source: BFM TV

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