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Swiss coffee machine maker Thermoplan weighs moving production after US tariffs increase costs

In a quiet Swiss village by Lake Lucerne, hundreds of people have long built coffee machines for some of the world’s biggest names. The company behind them, Thermoplan, grew from a small family business into a global supplier. One of its main clients is Starbucks.

But that success is now under serious threat. Recently, U.S. President Donald Trump imposed a 39% tariff on goods from Switzerland. On top of that, there are extra U.S. tariffs on industrial metals. For Thermoplan, this means an added cost of around 200,000 Swiss francs, or about 250,000 U.S. dollars, every single week.

Chief Executive Adrian Steiner says the company simply cannot carry such heavy costs. Unlike big corporations, Thermoplan does not have wide profit margins to absorb the blow. “We’re bleeding,” Steiner admitted.

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Jobs at Risk in Switzerland

Thermoplan, which has created more than 500 jobs in the lakeside town of Weggis, now faces the painful reality of possible job cuts. Most of its machines are built in Switzerland, with about 82% of parts sourced locally. Around 98% of what it produces is exported. Starbucks alone accounts for nearly a third of its sales.

With U.S. tariffs making exports costly, Steiner has pushed to explore shifting some production to Germany. Goods made there could be exported under the European Union’s lower 15% tariffs instead of the steep 39% applied to Switzerland. But Thermoplan is still waiting for U.S. customs to confirm if its products would qualify as EU-made.

There are also talks of moving some production to the U.S. itself. Yet, this would not be easy. Steiner has voiced concerns that Thermoplan may struggle to rebuild its supply chains abroad and may not find enough skilled workers.

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The pressure is not only on this one company. Switzerland is home to about 2,000 machinery makers, many of them family-owned, who export worldwide. The U.S. is a crucial market for them. One in seven export dollars in the sector comes from American buyers.

Industry association Swissmem has also sounded the alarm. Its deputy head, Jean-Philippe Kohl, has warned that if tariffs remain in place, as much as four-fifths of Swiss exports to the U.S. in the machinery sector could vanish. That would mean losses of around 10 billion Swiss francs. Already, about 3,000 jobs disappeared between the first and second quarters of this year. At worst, Kohl estimates up to 30,000 jobs could be gone by 2026 if the trade war continues.

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Shock and Disappointment in Switzerland

In Weggis, where Thermoplan is based, the mood is one of disbelief. Local leaders say they are deeply disappointed that trade with such an important partner is now under pressure. Marcel Waldis, the municipal council’s finance chief, expressed shock that the fate of local jobs depends so heavily on one country’s decision.

The tariffs were introduced as part of efforts by the United States to shrink its trade deficit. Switzerland, known for its strong exports and steady currency, became one of the targets. While Switzerland is pushing for lower duties through talks, there is no certainty yet about the outcome.

Meanwhile, Starbucks has said it is working with suppliers like Thermoplan to minimize the damage. After the first announcement of tariffs earlier this year, Starbucks and Thermoplan agreed to split the extra costs. But even that may not be enough if tariffs remain so high.

For now, the coffee machines that carry the label “Made in Switzerland” face an uncertain future. The seal of quality is a point of pride for Thermoplan and the country. But keeping that label could come at the cost of survival.

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