Victorinox tries to blunt tariff blow

Since Donald Trump imposed tariffs of 39% on imports of goods from Switzerland, Victorinox has boosted US inventory to mitigate tariff impact and is considering US end-of-line work to cut dutiable value, writes John Revill from Ibach, Switzerland

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Carl Elsener, CEO of Victorinox, holds a Swiss army knife. 'Our priority is to defend market share while the situation is so unpredictable,' said Mr Elsener.

Swiss army knife maker Victorinox is trying to hold down its US prices, while exploring new markets, as it experiments with new tools to navigate President Donald Trump's trade tariffs.

Popularised in the United States by American soldiers who were based in Europe after World War II, the distinctive red-and-silver multi-tool is made at a factory in Ibach, central Switzerland.

There, rolls of stainless steel are punched into blades, which are rounded with abrasive ceramic stones and baked at more than 1,000 degrees Celsius before being sharpened.

Victorinox, which produces 10 million Swiss army knives a year alongside kitchen and commercial knives, watches and luggage, is one of many Swiss manufacturers worried about the higher cost of doing business with the United States. Trump imposed tariffs of 39% on imports of goods from Switzerland in August in a bid to cut the US trade deficit with the country.