Impact of US Tariffs on Swiss Gold Trade
The imposition of a 39-percent tariff on Swiss imports into the United States has triggered significant concerns within the gold refining industry. The new levy is expected to affect gold bars, particularly those weighing one kilogram or 100 ounces (2.8 kilograms), which are now subject to so-called reciprocal tariffs. This development has sent shockwaves through the global gold market, with the price of gold on the US futures market hitting a record high.
The clarification by US customs authorities was first reported by The Financial Times on July 31. The announcement came as a surprise to many in Switzerland, where expectations had been that gold bars would be classified under a different customs code, thereby avoiding the impact of President Donald Trump’s sweeping “reciprocal” levies. However, this hope was quickly dashed, leading to increased pressure on the Swiss government.
Swiss officials traveled to Washington this week in an attempt to negotiate a deal similar to the European Union, which currently faces a 15-percent tariff. Unfortunately, their efforts were unsuccessful, and they returned empty-handed. This outcome has raised concerns about the future of the Swiss gold trade, which plays a crucial role in the country’s economy.
Gold Refining Industry at Risk
John Plassard, head of investment strategy at Cite Gestion, pointed out that it was naive for Switzerland to believe that gold would be exempt from US tariffs. He suggested that some of the gold refining business might shift to other centers such as Antwerp, where gold bars face a lower 15-percent tariff. Despite the strong reputation of Swiss refineries, the 39-percent tariff could significantly impact their competitiveness.
Switzerland is home to four of the world’s largest gold refineries, including Valcambi in Balerna, which is located in the Italian-speaking part of the country. These refineries process unrefined gold from mines, recycled jewelry, and lower-purity bars, transforming them into high-quality products. This makes Switzerland a central hub in the global gold trade, supplying bars used in various sectors, including jewelry, watchmaking, industry, technology, banking, and central bank reserves.
Economic Significance of the Gold Sector
According to the Swiss Federal Customs Administration, the country imported 2,372 tonnes of gold in 2023 and re-exported 1,564 tonnes. The value of these exports reached approximately 88 billion Swiss francs ($109 billion at current rates), with China and India being the primary buyers. Including other precious metals like silver and palladium, the sector supports around 1,500 direct jobs and 1,000 indirect jobs in Switzerland.
In 2023, Switzerland accounted for 34 percent of the total refined gold worldwide, according to the State Secretariat for Economic Affairs (SECO). This highlights the country’s significant role in the global gold market.
Surge in Swiss Gold Exports to the US
Swiss gold exports to the United States have seen a dramatic increase in recent years. In 2024, exports reached 11 billion Swiss francs, nearly doubling from 6.1 billion in 2023. The trend continued into the first half of 2025, with exports soaring to 39.2 billion francs, compared to just 1.7 billion in the same period in 2024. Nearly all of this increase—37.6 billion francs—occurred in the first quarter of 2025, followed by a sharp decline to 1.6 billion in the second quarter.
Swiss President Karin Keller-Sutter criticized the way the US calculated its trade deficit with Switzerland, arguing that the high tariff imposed was based on an unusual year influenced by the presidential election. She noted that the surge in gold exports in 2024 contributed to the deficit. A Swiss newspaper, Le Temps, highlighted that the White House may have relied exclusively on 2024 data, which was marked by increased demand for gold following Trump’s election victory.
