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

The sharp decline comes as analysts weigh in on the potential effects of the tariffs on Logitech's business. According to a research note from Vontobel analyst Michael Foeth, Logitech had initially 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 now reach around 700 basis points, significantly increasing the pressure on the company's profitability.

Despite these challenges, there may be some room for optimism. Vontobel suggests that Logitech has the flexibility to implement mitigating measures, including the ability to raise prices in the U.S. by 5%-10% to offset some of the tariff impact. The analyst estimates that while the unmitigated incremental EBIT impact could be about 30%, at least half of that can potentially be mitigated through various measures. However, 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.