The ongoing transatlantic trade tensions are forcing European companies to rethink their global manufacturing strategies, with some deciding to move production to the United States to circumvent steep tariffs. Swiss chocolate maker Lindt and iconic knife producer Victorinox have already announced plans to shift part of their operations to the US, a clear signal of the economic impact of protectionist policies.
This trend highlights the real-world consequences of the tariff battle that the new US-EU trade framework only partially resolves. While the deal offers a potential reduction in tariffs for EU cars from 27.5% to 15%, many other goods remain subject to significant duties. For non-EU countries like Switzerland, which are caught in the crossfire, moving production inside the US market becomes a viable, if costly, alternative.
The decision by these high-profile Swiss brands illustrates a broader calculation being made in boardrooms across Europe. The uncertainty and high cost of tariffs are making direct investment in the US market more attractive than exporting from Europe. This could lead to a long-term shift in supply chains, impacting European jobs and investment.
The new trade framework itself may not be enough to halt this trend. With a baseline 15% tariff still in place for many goods and no exemptions for key sectors like wine and spirits, the incentive to onshore production in the US remains. This corporate scramble is a powerful indicator that even with a deal, the era of frictionless transatlantic trade is far from being restored.
Companies Scramble to Avoid Tariffs as Swiss Firms Announce US Production Shift
