If The Swiss Army Knife Is Made In America, Is It Still Swiss?

(MENAFN- Swissinfo) In the vast Alpine factory where Swiss Army knives are made, workers fixed finely sharpened blades onto stainless steel plates. Corkscrews, mini-scissors and can openers were clicked into place. Sealed in a bright red case and stamped with a silver cross and shield, a“Made in Switzerland” icon was born. This content was published on September 22, 2025 - 15:02 8 minutes Liz Alderman, The New York Times

Carl Elsener Jr., the CEO of Victorinox, which makes the famed pocket tool, smiled at the craftwork and pointed proudly to a photo of former US President George H.W. Bush and his wife, Barbara, touring the factory during a visit in the late 1990s and assembling their own knives by hand.

The United States has long been Victorinox's most important market, Elsener said, raising his voice above the din of machinery. But after President Donald Trump blindsided Switzerland last month by imposing a 39% import tariff, the highest for any Western country, the treasured ties were thrown into question.

“It was a shock,” said Elsener, who, like many Swiss executives, had anticipated an outcome more like that of the European Union, which negotiated a 15% tariff, or Britain, which was slapped with a basic tariff of 10%.“No one had expected such a drastic step,” he added.

Carl Elsener Jr., CEO of Victorinox. Lea Meienberg/The New York Times

After decades of easy entry into America, a wall has gone up for the Swiss. If the tariffs stay in place, Victorinox will face a $13 million (CHF10.3 million) US import tax bill next year. After keeping US prices steady this year, Elsener may have to raise them. The company's professional kitchen knives suddenly cost more than those of European competitors. And US customs paperwork, once simple, is now a Kafkaesque ordeal.

“The new tariffs are hitting Switzerland's export-oriented economy hard,” said Jan Atteslander, a director at EconomieSuisse, the lobbying group for Swiss businesses.“A swift agreement on reducing tariffs is essential.”

The shock has set off an unexpected identity crisis in this orderly nation. Companies like Victorinox are weighing whether they move some parts of their production to America and still retain their Swiss essence. Switzerland's principles of independence and neutrality are being tested, forcing a reevaluation of its relationship with the EU. Above all, the Swiss are left with a burning question: Why did this happen to us?

'Prepared for the worst'

Swiss officials are scrambling to placate Trump, who has singled out countries that he says treat Americans“unfairly” by exporting more goods to the United States than they buy; he has also railed against Switzerland's $39 billion trade surplus. Swiss Economics Minister Guy Parmelin rushed to Washington this month with what he called a“better offer” for a new trade deal. Jean-Frédéric Dufour, head of Swiss luxury watchmaker Rolex, even invited Trump to the company's VIP box at the US Open men's finals in New York in a bid at soft diplomacy.

More More Workplace Trump tariffs: Swiss brands struggle to adapt to 39% tariff

This content was published on Aug 18, 2025 Swiss brands like Victorinox, the manufacturer of the iconic pocket knife, are struggling to adapt to the 39% tariff imposed by the United States on imports of Swiss goods.

Read more: Trump tariffs: Swiss brands struggle to adapt to 39% tarif

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