Logitech International SA (LOGI) shares plummeted more than 10% in pre-market trading on Thursday, as investors reacted to news of President Trump's decision to impose a 31% tariff on Swiss products. The move is expected to significantly impact the Swiss tech industry, with Logitech being one of the prominent victims of this trade policy.
According to trade association Swissmem, the new tariffs will hit the Swiss tech industry "very hard in an already tense economic environment." The United States represents the second-largest sales market for Swiss tech companies, accounting for a 14.9% share. Last year, Swiss tech exports to the U.S. amounted to approximately $11.5 billion, underscoring the potential magnitude of the impact on the sector.
While Logitech produces its products in Asia, the company's Swiss headquarters and significant presence in the U.S. market make it vulnerable to these tariffs. The trade association noted that small and medium-sized enterprises without production facilities in the U.S. would be the most affected. As investors grapple with the potential consequences of this trade policy on Logitech's future earnings and market position, the stock's pre-market plunge reflects growing concerns about the company's ability to maintain its competitive edge in the face of these new challenges.
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