Switzerland: Customs duties, a massive challenge for Victorinox knives

The United States is a key market for the manufacturer of Swiss knives Victorinox. Known for its pocket knives equipped with corkscrew and boxing, the company based in Ibach (SZ), is currently working with its teams in the United States to find solutions to customs duties imposed by Donald Trump.

But “relocating production abroad – in particular for pocket knives – is not an option”, the brand being in essence “defined by its Swiss origin”, said its boss on Wednesday, Carl Elsener, in an email to AFP.

Switzerland is sounded by 39% punitive customs duties applicable since last Thursday to Swiss products entering the United States. This surcharge – much higher than the 15% imposed on the products of the European Union or Japan – has the effect of a blow for both industrial machines and watches, cheese or chocolate.

“In the short term, the situation is not yet critical,” according to the boss of Victorinox, since stocks in the United States have been increased before their entry into force. The additional costs that these customs duties induces therefore remain “manageable for the current year”. Thanks to these stocks, the Swiss brand will “deliberately” be able to refrain from increasing its prices “until the end of the year”, he specifies.

“However, if these customs duties remain in place, we are in the process of contemplating up to $ 13 million in additional costs per year from 2026,” warns the boss of the manufacturer of the famous knives of the Swiss army. “These new customs duties intervene at a time when the situation is already tense”, with the weakening of the dollar against the Swiss franc, and therefore represent “a massive challenge for our competitiveness”, he insists.

Victorinox, which also manufactures kitchen knives, is discussing with its teams in the United States to see “to what extent” price increases are possible next year and if “certain stages”, “like final cleaning or professional knife packaging”, can be made “directly on site”, he explains.

But if the company remains “flexible” to “adapt to changing conditions”, he insists that it remains “committed” alongside its Ibach site, where it had been founded in 1884 by its great-grandfather.

In 2024, Victorinox achieved a turnover of 417 million Swiss francs. The United States, its first export market, contributed to 13% of its sales, this figure climbing 18% for its sales of professional and cooking knives.

The Swiss brand is well known in the United States, notably through the television series of the 1980s and early 1990 “MacGyver” where the hero regularly came out of difficult situations thanks to his faithful Swiss knife. Some models are equipped with screwdrivers, metal saw, scissors and electrical wire stripping.