Switzerland is offering to shift part of its gold refining business to the United States in an effort to convince Washington to lower a steep 39 percent tariff on Swiss exports. The plan, discussed privately with U.S. Treasury and trade officials, would move low-margin activities such as recasting large gold bars into the smaller sizes favored in New York onto U.S. soil.
The tariff, introduced in August, is among the highest the U.S. has imposed on a developed nation. Washington cited Switzerland’s large goods trade surplus as justification. Since gold is a major Swiss export, it became the focal point of the dispute. By relocating part of its refining closer to American consumers, Switzerland hopes to reduce the number of finished bars crossing the border, making the tariff less burdensome.
Broader strategy under consideration
Gold refining is only one piece of Switzerland’s larger trade approach. Other ideas on the table include:
- Expanding Swiss pharmaceutical production in the U.S.
- Increasing purchases of American defense and energy products
- Adjusting trade channels to rebalance flows
This wider plan signals Switzerland’s willingness to make concessions to safeguard its export-heavy economy.
Challenges and pushback
While some Swiss refiners already plan to expand in the U.S., the economics are tough. Recasting gold bars is a low-profit activity, and building new facilities would require significant investment. Valcambi, one of Switzerland’s top refineries, has questioned the financial sense of opening operations in the U.S., citing thin margins and an already competitive market.
Domestically, critics have voiced concerns. Members of the Swiss Green Party argue that the gold industry brings reputational risks while contributing less to the national economy compared to its size in exports. They have suggested levying taxes on gold exports to offset tariff costs. The industry, however, warns that such measures could backfire by weakening Switzerland’s open trade stance.
On the U.S. side, officials have not publicly confirmed whether they support Switzerland’s proposal. Swiss negotiators insist their plan has been optimized and that discussions remain active.
If the proposal gains acceptance, it could reshape U.S.–Swiss trade. For Washington, it would mean more refining activity at home and stronger oversight of the gold supply chain. For Switzerland, it would represent a strategic concession to shield broader export interests.
The success of this plan depends on two factors: whether the U.S. views the move as a meaningful step toward reducing the trade imbalance, and whether Swiss refiners can make U.S. operations financially viable. As talks progress, the outcome could influence not only the flow of gold but also the future framework of bilateral trade relations.
