The United States President Trump proposed a high import tariff of 39% on Switzerland last month. In response, the Swiss government is attempting to seek tariff relief by investing in the American gold refining industry.
This 39% equivalent tariff is the highest imposed by the Trump administration on developed countries so far. Switzerland’s new tax rate is nearly 2.5 times that of the EU’s tariffs and 4 times that of the UK’s goods, which will have a significant impact on Switzerland’s export-oriented economy, forcing Swiss authorities to reassess their trade strategy.
According to reports from Bloomberg, this move comes after Swiss President Karin Keller-Sutter’s previous attempts to resist Trump’s policies failed, leading to a shift towards a more compromising stance.
Bloomberg cited sources saying that Switzerland has proposed to the U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer a plan to relocate low-profit gold refining operations of Swiss businesses to the United States. This includes melting large gold bars traded in London markets and recasting them into smaller bars preferred in the New York market.
The proposal aims to create jobs and investments in the United States in order to ease the Trump administration’s dissatisfaction with Switzerland’s trade surplus. As the negotiations are confidential, the individuals involved have requested anonymity. The U.S. Treasury Department has not commented on the matter yet.
The Swiss government released a statement saying they have “optimized their proposal to the U.S. in hopes of swiftly reaching an agreement.” The statement emphasizes that Switzerland will continue to strive to reduce additional tariffs through diplomatic and political channels as soon as possible.
Switzerland is a leading global gold refining country, with gold exports being a significant factor in driving the U.S.-Swiss trade deficit. In 2024, Swiss merchandise exports to the United States exceeded $63 billion, making it the 13th largest trade deficit country for the U.S., which has caused Trump’s discontent.
According to Swiss customs data, the United States is an important trading partner for Switzerland, accounting for 18.6% of Swiss exports last year.
The primary reasons for the U.S.-Swiss trade deficit are chemical, pharmaceutical, and gold exports.
Christoph Wild, Chairman of the Swiss Precious Metals Producers and Traders Association, said that gold being transported from the UK to the U.S. passing through Switzerland is an inefficient market process. He stated that this objective could be achieved by expanding existing facilities in the United States but emphasized that the demand in the U.S. market is a crucial factor for the feasibility of such projects.
Wild said, “All our refining members have medium to long-term plans for further investment in the United States.”
Regarding the low-profit business of recasting gold bars, Wild admitted that running low-profit recasting operations in the United States without government subsidies would be challenging.
Simone Knobloch, Chief Operating Officer of Switzerland’s largest gold refiner Valcambi SA, stated that due to low profits and market saturation in the U.S., constructing a new refining plant in the U.S. is not commercially viable. The company processes up to 2,000 tons of precious metals annually at its factory in Balerna near the Italian border.
However, some refiners are considering accelerating their investment plans in the U.S. to respond to Switzerland’s negotiating strategy.
According to an insider, at least one refiner is contemplating expediting their investment plans in the U.S.
Meanwhile, the Swiss government is actively seeking concessions in other sectors, including pharmaceuticals, energy, and agriculture, to alleviate tariff pressure.
Swiss pharmaceutical giants Roche and Novartis have announced plans to invest billions of dollars in the United States over the next five years to counteract tariff impacts.