Logitech International SA (LOGI) experienced a significant downturn in pre-market trading on Monday, with shares plummeting 5.55% as investors reacted to growing concerns over the impact of U.S. tariffs on the company's performance. The Swiss manufacturer of computer peripherals is facing potential headwinds from increased trade tensions between the United States and its trading partners.

According to a research note from Vontobel analyst Michael Foeth, Logitech is likely to be affected by U.S. tariffs, but the company has some room to implement mitigating measures. In March, Logitech estimated a 200 basis point hit on its gross margins from applicable tariffs on products from China and Mexico. However, with new U.S. levies recently unveiled, the unmitigated impact could reach around 700 basis points. Vontobel suggests that Logitech has the flexibility to raise prices in the U.S. by 5%-10% to offset some of the tariff impact.

Despite these challenges, analysts estimate that while the unmitigated incremental EBIT impact could be about 30%, at least half of that can potentially be mitigated through various measures. As the market digests this information, investors appear to be taking a cautious stance, leading to the significant pre-market decline in Logitech's stock price. The company's ability to navigate these trade tensions and implement effective mitigation strategies will likely be closely watched by investors in the coming weeks.