Editor’s Note
This article examines the potential impact of proposed U.S. tariffs on Switzerland’s gold refining industry. While reports indicated an imminent executive order, its status remains unclear at the time of writing.
According to reports, the White House stated on the 8th (local time) that it would issue an executive order in the near future to counter the United States’ misinformation regarding tariffs on gold and other special products. However, as of the reporter’s deadline on the 10th, the executive order had not been issued.
Switzerland itself has no gold mines, but the amount of gold exported from its refineries to the United States is enormous, valued at approximately $61.5 billion in the 12 months ending in June. This has a significant impact on the trade surplus between Switzerland and the United States, leading some within the Swiss government to attribute the failure of trade negotiations to this industry.
Previously, after returning “empty-handed” from the United States, the Swiss government stated that negotiations would continue to strive for a better agreement. However, some centrist and left-wing politicians in Switzerland have publicly called for the country’s gold industry to bear the cost of the tariffs in some form.
Global gold trade typically follows a “triangular model”: large gold bars are transported back and forth between London and New York, with Switzerland in the middle, where they are refined into different specifications. The gold bar specifications used in London and New York are not the same.
Refining services are the main driver of Switzerland’s monthly gold imports and exports. However, for refineries, this is a business with extremely low profit margins and fierce price competition.
According to official data previously obtained by First Finance reporters, Switzerland is the world’s largest gold trading country, with about 20% of global gold trade conducted in Switzerland. Switzerland’s inextricable link with gold began with the watchmaking industry in the 17th century, when the burgeoning watch production drove demand for precious metals. In the 19th century, Switzerland opened its first industrial-scale gold refinery; during the two World Wars in the 20th century, neutral Switzerland gained the status of a “heaven for storing gold bars and other valuables.” Now, Switzerland’s gold refining industry continues to flourish. Four of the world’s seven major gold refineries are located in Switzerland: Valcambi, Pamp, Argor-Heraeus, and Metalor.
At the beginning of 2025, refineries were still shipping gold bars to New York, but this trade flow reversed in April, with previously accumulated metals in the United States beginning to flow back to London. In recent months, Switzerland’s gold exports to the United States have almost dropped to zero.
Robin Kolvenbach, the joint chief executive of a refinery in Aarau-Glarus, Switzerland, questioned the logic of using gold bars of different specifications in different markets.
In comparison, the most valuable customers for Swiss refineries often come from the luxury watch industry, for whom the refineries provide precious metals.
Christoph Wild, chairman of the Swiss Precious Metals Manufacturing and Trading Association, stated that the industry is facing “enormous uncertainty” brought about by constantly changing U.S. tariff rules, as well as political backlash within Switzerland.
Wild had previously been interviewed by a First Finance reporter, stating that compared to the other 11 major refining centers globally, Switzerland’s advantage may not necessarily lie in production volume, but in the variety and quality of services provided.
According to reports, in trade negotiations with the United States, one possible condition the industry might propose in the future is to increase investment in U.S. refining services. The United States is one of the world’s largest gold producers, but its refining capacity is limited.
James Emmett, chief executive of the refining firm MKS Pamp, recently stated that the company is “committed to expanding its market services in the United States” and claimed to already own a foundry in Utah.
According to data from the Swiss National Bank, gold was the country’s largest single export commodity last year, accounting for 27% of total exports, surpassing the pharmaceutical industry. Earlier this year, Swiss gold exports increased significantly, partly because U.S. investors were buying gold before the tariffs were implemented, a situation that drew special attention from the United States.
On the 8th, the World Trade Organization (WTO) stated in its updated forecast that U.S. import volume in the first half of 2025 increased by 11% year-on-year, mainly due to advance purchases and inventory accumulation, with a 14% quarter-on-quarter increase in the first quarter and a 16% quarter-on-quarter decrease in the second quarter after seasonal adjustment.
The WTO explained that the surge in U.S. imports in the first quarter was largely due to widespread market expectations of tariff increases.
However, due to the continued widening of the trade surplus with the United States, this puts Switzerland at a disadvantage in negotiations with the United States.
Voices within Switzerland calling for action are growing louder. Lisa Mazzone, leader of the Swiss Green Party, suggested that the industry compensate Switzerland through “appropriate tariffs” to offset the impact of Trump’s tariffs.
Members of the Swiss Social Democratic Party also criticized the Swiss government for failing to foresee that gold could become a politically sensitive issue.
Nannette Hechler Fayd’herbe, chief executive of the European region of a Swiss private bank, stated: