Strategic Relocation: Why Tariffs are Pushing European Production to the US

The ongoing US-EU tariff dispute is triggering a strategic relocation of production, as European companies increasingly view moving manufacturing to the United States as the only guaranteed way to access its market. The announcement by Swiss firms Lindt and Victorinox to shift some operations stateside is a leading indicator of this significant trend.
This “onshoring” is a direct consequence of protectionist policies. For these companies, the cost and uncertainty of facing tariffs on their exports outweigh the expense and complexity of setting up new production facilities in the US. The new trade framework, which solidifies a 15% tariff on many goods, only strengthens the business case for such moves.
The implications for Europe are profound. This is not just a temporary adjustment but a long-term shift in global supply chains. It could lead to a loss of high-skilled manufacturing jobs, reduced investment in European facilities, and a diminished role for Europe as a production hub for global brands.
While the EU and US have reached a framework deal, it may have come too late to reverse this trend. The years of tariff uncertainty have already pushed companies to reconsider their strategies. The new agreement, with its baseline 15% tariff, may simply be seen by many businesses as confirmation that relocation is the most prudent long-term solution.