New US tariffs threaten thousands of jobs in Swiss mechanical engineering

Thermoplan, a company based in central Switzerland and a key supplier of coffee machines to Starbucks, is facing an existential threat due to new US tariffs. On August 7, US President Donald Trump imposed a 39 percent import tariff on products from Switzerland.

According to Thermoplan, the new tariffs – together with existing US tariffs on industrial goods – are causing additional weekly costs of around CHF 200,000. This is not sustainable for the company in the long term.

Thermoplan is therefore considering relocating production capacities to Germany and is considering transferring parts of its workforce to the US in order to counteract the consequences of the tariff policy.
CEO Adrian Steiner speaks of a “loss-making business” and warns of a possible further wave of layoffs.

The mechanical, electrical, and metal industry (MEM) is of central importance to Switzerland: one in seven export francs depends on the US market. According to an analysis by the industry association Swissmem, up to 30,000 jobs are at risk by the end of 2026.

Starbucks is trying to cushion the blow by sharing the customs costs with Thermoplan. If the US tariff rate remains at 39 percent—while the EU rate is 15 percent—a large proportion of Swiss MEM exports to the US are at risk of collapsing.

A survey by Swissmem shows that almost a third of companies are already considering relocating production.

(reuters, red)