AsianFin -- Swiss coffee machine maker Thermoplan, a key supplier to Starbucks, is reeling from steep U.S. tariffs that threaten hundreds of jobs in its home village of Weggis on Lake Lucerne.

Once a small family business, Thermoplan grew rapidly in the late 1990s as globalization accelerated, eventually employing more than 500 people. But since Aug. 7, when President Donald Trump imposed a 39% tariff on Swiss goods citing the country’s trade surplus with the U.S., the company has faced mounting losses.

Chief Executive Adrian Steiner estimates the 39% levy, combined with separate U.S. tariffs on industrial metals, is costing the firm around 200,000 Swiss francs ($250,000) each week.

“We’re bleeding,” Steiner said. “It’s obviously a losing business for us. We don’t have the kind of margins to compensate for that.”

To offset the blow, Thermoplan is setting up production in Germany to take advantage of lower European Union tariffs and is weighing whether to shift some jobs to the U.S. to preserve access to its largest market.