Tariff Talks: Swiss Propose Investment in US Gold Refining
Feeling the weight of the Trump Administration’s tariff policy, Switzerland’s government is offering to encourage Swiss gold refiners to invest in the US gold refining industry.
The Swiss are suffering under one of the highest Trump tariff rates globally. In effect since August 7, 2025, US officials say the 39 percent tariff on Swiss imports is necessary to address an estimated US$48 billion trade deficit.
The tariff targets many of the European nation’s most iconic industries, such as chocolate, luxury watches, coffee machines and even gold.
Back in late July, the US Customs and Border Patrol posted a ruling indicating that the tariffs on Swiss imports would include 1 kilogram and 100 ounce gold bars. Spot gold prices subsequently surged by more than 3 percent, from US$3,290 to US$3,398, and December futures reached an all-time high of US$3,549 per ounce of the metal.
In response, traders halted imports of Swiss gold bars. However, in September, Trump issued an exemption for gold bullion products.
Switzerland’s economic ministry, known as the State Secretariat for Economic Affairs (SECO), is concerned the tariff’s could weaken the country’s economic growth outlook. "An updated economic scenario from SECO shows that, as a result of higher US import tariffs, the Swiss economy is likely to grow more slowly than previously expected, particularly in 2026," the ministry stated.
Swiss make a golden offer to lower tariff rates
This week, Bloomberg is reporting that Swiss officials are getting creative when it comes to tempting Trump into lowering tariff rates. Switzerland is home to the world's largest gold refining hub, and is a central part of the circular gold trade that flows through London and New York.
One of the proposals for getting a tariff break involves incentivizing Swiss refiners to produce the 1 kilogram gold bullion bars for the New York market on site in the US. Currently the larger gold bars favored in London are melted down and shipped to Switzerland for refining and then the newly made smaller bars are shipped to New York.
Christoph Wild, president of the Swiss Association of Precious Metals Producers and Traders, told Bloomberg this change would go a long way in addressing current inefficiencies. Swiss refiners are considering such investments in the “mid-term to long-term”, according to Wild.
Ideally, it would involve expanding current operations and ensuring there’s enough US demand to make that a viable prospect for Swiss refiners. However, he acknowledged that this might not be feasible without “some subsidies from the Swiss government or the US government”.
For those Swiss refiners without existing facilities in the US, such as Switzerland’s largest gold refiner, Valcambi SA, investing in new operations from the ground up might not be a sound business decision.
The Swiss government representatives’ proposal was a part of a larger set of concessions that included energy, agriculture and financial services.
The negotiations with US US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are ongoing and the Trump Administration has yet to respond to questions about the Swiss delegation’s offer.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
