Starbucks Faces Bitter Harvest of Trump Tariffs with Key Supplier in Switzerland

Starbucks supplier in Switzerland faces a bitter harvest due to Trump tariffs, impacting the company's coffee roasting activity. The group's net sales are primarily generated from sales within company-operated coffee shops (82.3%), licensed stores (12.4%), and other sources (5.3%). Net sales are distributed geographically across the United States (73.8%), China (8.3%), and other regions (17.9%).

Swiss coffee machine maker Thermoplan is facing significant financial challenges due to the 39% U.S. tariffs imposed on Swiss goods. The tariffs, introduced by former U.S. President Donald Trump, have put the company's operations in jeopardy, particularly its key supply chain and export market to the United States.

Thermoplan, a key supplier for Starbucks, has been forced to consider relocating its production to Germany and the United States to mitigate the impact of the tariffs. The company's CEO, Adrian Steiner, estimates that the tariffs are costing the company around 200,000 Swiss francs ($250,000) every week. Steiner expressed concern that the tariffs are making it difficult for the company to maintain its profit margins and compete in the global market.

The tariffs have also led to a potential shift in business towards the European Union, with around one in every seven dollars made from exports by Swiss machine makers being U.S.-dependent. Jean-Philippe Kohl, deputy head of industry association Swissmem, predicts that if the tariffs stay at 39% and those on the EU at 15%, about four-fifths of U.S. exports from the Swiss mechanical and electrical engineering sector could disappear.

The impact of the tariffs is already being felt in the Swiss economy, with around 3,000 jobs in the sector lost between the first and second quarters of 2025. At worst, this number could reach 30,000 by the end of 2026, according to Kohl.

Thermoplan is currently attempting to negotiate lower duties with the U.S. and is considering relocating some of its operations to the United States. However, Steiner expressed concern that the company may not have the muscle to uproot its supply chains to the U.S. and may struggle to find enough skilled workers there.

The situation highlights the broader impact of tariffs on global trade and the potential for a ripple effect on other sectors and countries. If other nations follow the U.S.'s lead, there could be significant consequences for global trade and the Swiss economy.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3UJ0PS:0-key-starbucks-supplier-in-switzerland-tastes-bitter-harvest-of-trump-tariffs/
[2] https://www.reuters.com/business/key-starbucks-supplier-switzerland-tastes-bitter-harvest-trump-tariffs-2025-09-02/