Trump's Tariffs: Possible Contribution of Swiss Gold Refineries to the Conflict?

In an unexpected turn of events, Switzerland's gold refining sector is bracing for a significant impact following the imposition of a 39% tariff on Swiss imports by the United States. The tariff, which took effect on August 7, 2025, was imposed due to a $38-billion trade deficit between the two countries.

The gold sector, although tiny, plays a surprising role in the Swiss economy. With just five major refiners employing around 1,500 people, the sector significantly contributes to the trade deficit between Switzerland and the United States. In the first half of 2025, gold exports soared to nearly 480 tons, worth about 40 billion Swiss francs, inflating the Swiss export figures to the US and worsening the trade imbalance.

The tariff on one-kilo gold bars could deal a major blow to Switzerland's gold refining sector. If confirmed, this could potentially cut Swiss GDP by 0.3% to 0.6% over the next year, if the levies remain in place for long.

The US President, Donald Trump, justified the tariff by stating that it aims to address the trade deficit. However, Switzerland's non-gold producers argue they will take the hit from the tariffs, even though they're mostly not to blame for the imbalance.

The Swiss Federal Council, in an attempt to mitigate the impact, held an emergency meeting on August 7, 2025, following unsuccessful talks with US officials regarding the tariff. The government is focusing on relief measures for export-oriented businesses and continuing talks with Washington to find a solution.

Interestingly, the Swiss government is considering the idea of importing US liquefied natural gas, despite Switzerland being a landlocked country. This could potentially help offset the trade imbalance.

The remaining trade deficit is mostly made up of the exports of pharmaceuticals, watches, and precision-engineered goods. Notably, luxury and consumer goods such as watches, skin care and cosmetics products, precision instruments, and chocolate are expected to face large price rises in the US.

It's important to note that the Swiss government dropped tariffs on nearly all US imports last year, giving US producers virtually free access to Swiss markets. However, a promise by Switzerland to hike investments in the US by $150 billion was rejected by US officials.

The SNB has argued that gold should be excluded from Washington's tariff calculation since refiners earn just a small fee for processing the metal. Keller-Sutter's proposal for a 10% tariff rate was also rejected by US officials.

The high tariff is the highest among developed countries and may inflict major damage on trade with the US, Switzerland's most important trading partner. The Swiss Federal Council is not currently considering tariff countermeasures in response to the 39% tariff.

The news about the potential tariff on gold bars sent shockwaves through the global market. Comex gold futures trading for December delivery reached a new all-time high of $3,534 per troy ounce on August 8, 2025, in reaction to the news.

As the situation unfolds, both countries are under pressure to find a resolution that will not only protect their respective industries but also maintain the strong economic ties that have been built over the years.

Trump's Tariffs: Possible Contribution of Swiss Gold Refineries to the Conflict?