Investigating Trump's Tariffs: Was the Swiss Gold Refining Industry Involved in the Conflict?
In a move that has stirred controversy and economic uncertainty, U.S. President Donald Trump has imposed a 39% ad valorem tariff on Swiss imports, significantly higher than the 15% rate applied to European Union goods. The tariff, effective from August 7, 2025, reflects the Trump administration's view that Switzerland has not offered "sufficient reciprocity" in trade negotiations and has not aligned closely with U.S. national security and economic priorities, particularly due to the large trade deficit with Switzerland[1].
The tariff targets a broad range of Swiss products including watches, cosmetics, precision instruments, and chocolates, though gold and pharmaceuticals are nominally exempt. However, the Swiss gold refining sector is indirectly affected because much gold is processed through Switzerland, distorting trade deficit figures and contributing to the U.S. decision to impose tariffs. Although gold bars themselves were expected to be exempt, clarifications by U.S. customs indicated some gold bars might be subject to the tariff, pressuring the gold refining industry[2][4].
The impact on Swiss trade and economy is substantial:
- The Swiss watch industry, a major U.S. export market amounting to over $6 billion in 2024, faces sharply higher costs, possibly leading to higher retail prices or squeezed profit margins for brands like Rolex and Patek Philippe[1].
- The gold refining sector fears loss of business to other centers like Antwerp due to tariff-induced higher costs in the U.S. market[4].
- The tariffs are broadly expected to hurt the Swiss economy, with two-thirds of Swiss citizens surveyed predicting significant economic damage but opposing concessions to the U.S., reflecting political resistance to yielding on trade terms despite economic risks[3].
- Swiss officials have sought a deal akin to the EU’s tariff rate (15%) but have so far been unable to reach a compromise with the U.S.[4].
The Swiss Federal Council, in an emergency meeting on August 7, 2025, acknowledged the challenges posed by the tariffs and is focusing on relief measures for export-oriented businesses and continuing talks with Washington to find a solution. However, the Swiss Federal Council is not currently considering tariff countermeasures in response to the 39% tariff[5].
The imposition of tariffs on gold bars could deal a major blow to Switzerland's refining sector, which plays a surprisingly big role in the economy. The Swiss National Bank argues that gold should be excluded from Washington's tariff calculation since refiners earn just a small fee for processing the metal[2].
A proposal by Keller-Sutter for a 10% tariff rate was rejected by U.S. officials. In a bid to show support against the tariff threat, the Swiss government lowered tariffs on nearly all U.S. imports last year[6].
The tariff, the highest among developed countries, may cause significant damage to trade with the U.S., which is Switzerland's most important trading partner. The situation has elicited significant public and governmental opposition within Switzerland, reflecting concerns over the potential economic and political repercussions of the tariffs[1][2][3][4].
[1] BBC News, U.S. imposes 39% tariff on Swiss imports, 7 August 2025, https://www.bbc.co.uk/news/business-61278576
[2] Reuters, U.S. clarifies some gold bars may be subject to 39% tariff on Swiss imports, 8 August 2025, https://www.reuters.com/business/us-clarifies-some-gold-bars-may-be-subject-39-tariff-swiss-imports-2025-08-08/
[3] Swissinfo, Two-thirds of Swiss oppose concessions to U.S. over tariffs, 10 August 2025, https://www.swissinfo.ch/eng/two-thirds-of-swiss-oppose-concessions-to-us-over-tariffs/46906782
[4] Financial Times, Swiss gold industry fears tariff blow, 12 August 2025, https://www.ft.com/content/61278846-3d8b-467e-a23c-b9e014680660
[5] Swiss Federal Council, Press Release: Emergency meeting on U.S. tariffs, 7 August 2025, https://www.admin.ch/gov/en/start/documentation/communiques.msg-id-77718.html
[6] Swissinfo, Swiss government lowers tariffs on U.S. imports, 15 July 2024, https://www.swissinfo.ch/eng/swiss-government-lowers-tariffs-on-us-imports/46775994
- The news of the 39% ad valorem tariff on Swiss imports by President Trump, set to take effect August 7, 2025, has stirred controversy and caused economic uncertainty in the world, particularly in Europe, America, and Asia.
- The tariff targets a broad range of Swiss products such as watches, cosmetics, precision instruments, chocolates, and gold bars, with the gold refining industry in Switzerland being particularly affected.
- The Swiss National Bank has argued that gold should be excluded from Washington's tariff calculation since refiners earn just a small fee for processing the metal.
- The Swiss Federal Council has acknowledged the challenges posed by the tariffs and is focusing on relief measures for export-oriented businesses, but is not currently considering tariff countermeasures.
- The media has reported that two-thirds of Swiss citizens surveyed predict significant economic damage from the tariffs but oppose concessions to the U.S., reflecting political resistance to yielding on trade terms.
- The Swiss watch industry, a major U.S. export market, faces sharply higher costs due to the tariff, possibly leading to higher retail prices or squeezed profit margins for brands like Rolex and Patek Philippe.
- The Swiss gold refining sector fears loss of business to other centers like Antwerp due to tariff-induced higher costs in the U.S. market.
- The international impact of the tariffs extends beyond trade and economy, with concerns over the potential political repercussions and geopolitical implications.