Editor’s Note
This article discusses Switzerland’s reported proposal to expand its gold refining capacity within the United States as a strategic move to address trade tensions and reduce U.S. tariffs.
Switzerland is proposing that its gold industry build a refinery in the United States or increase its processing capacity there, as part of a plan to reduce U.S. trade tariffs, according to two people familiar with the matter.
On August 7, U.S. President Donald Trump imposed a 39% tariff on imports of Swiss products due to the U.S. trade deficit with Switzerland, which had eliminated its own industrial tariffs early last year. This deficit is largely due to Swiss exports of chemicals, pharmaceuticals, and gold.
Since the tariffs took effect, the Swiss government and private sector have been working together to reduce them.
Switzerland is a key player in gold refining, and part of the plan involves the metal industry increasing its processing capacity in the United States to balance trade flows, said the sources, who requested anonymity due to the sensitivity of the issue.
This would involve building a new refinery or investing in additional capacity within U.S. territory, they added. The Swiss Ministry of Economy confirmed that confidential talks are being held with the United States at various levels but declined to comment specifically.
Christoph Wild, president of the Swiss Association of Precious Metals (ASFCMP), declined to specify whether a refinery would be built. However, he warned that as long as gold contributes to inflating the deficit, the industry will have to analyze alternatives to mitigate it.
Swiss Economy Minister Guy Parmelin held what he called “constructive” talks with senior economic officials of the Trump administration last Friday. According to the sources, the gold-related plan was already underway at that time, and negotiations between the two countries continue.
Switzerland is working on a proposal for Trump that combines purchases of U.S. goods with new investments in the United States.
To reduce the deficit generated by the pharmaceutical sector, the strategy aims for Swiss companies to produce the entire demand of that market in the United States, the sources said. They are even considering sufficient production capacity for companies to export from U.S. territory, they added.
With this, Switzerland hopes its pharmaceutical companies will be exempt from possible tariffs resulting from the U.S. Section 232 investigation, which assesses whether dependence on foreign medicines threatens national security.
The association Interpharma, which groups the Swiss pharmaceutical industry, argues that when services are included, there is no real deficit with the U.S. It also warned that trying to eliminate it at the expense of pharmaceuticals would severely damage the Swiss economy.
However, it acknowledged the trend of serving large markets through increased local production. Increasing capacity in the United States could reduce pressure on Switzerland, although it would likely weaken its position as a global pharmaceutical hub.
Switzerland also plans to increase purchases of U.S. military products and allow the United States to sell more liquefied natural gas through and to the European country.
To balance trade, the strategy also envisions Swiss companies channeling a larger volume of energy transactions through Switzerland instead of London, the sources indicated.
