Editor’s Note
This article examines Switzerland’s strategic response to unprecedented U.S. tariffs, highlighting a potential shift from traditional diplomacy toward direct economic investment as a tool for trade negotiation.
In response to the 39% retaliatory tariffs imposed by U.S. President Donald Trump on Swiss imports last month, the Swiss government is attempting to secure tariff relief by proposing investments in the U.S. gold refining industry.
This 39% tariff, the highest yet levied by the Trump administration on a developed nation, is nearly 2.5 times the rate applied to EU goods and four times that for UK goods. It poses a significant threat to Switzerland’s export-oriented economy, forcing Swiss authorities to reassess their trade strategy.
According to Bloomberg, this move represents a shift towards compromise by Swiss President Karin Keller-Sutter, following the failure of earlier attempts to confront Trump’s policies head-on.
Citing informed sources, Bloomberg reports that Switzerland has submitted a proposal to U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. The plan involves transferring low-margin operations from Swiss gold refiners to the United States. This includes melting down large gold bars traded on the London market and recasting them into smaller bars preferred by the New York market.
The proposal aims to address the Trump administration’s dissatisfaction with Switzerland’s trade surplus by creating U.S. jobs and investment. The sources requested anonymity due to the private nature of the negotiations. The U.S. Treasury Department has not commented.
The Swiss government issued a statement saying it had “optimized its proposal to the United States with the aim of reaching an agreement quickly.” It emphasized that Switzerland would continue to use diplomatic and political channels to work towards a rapid reduction of the additional tariffs.
As a global leader in gold refining, Swiss gold exports are a major factor driving the U.S.-Swiss trade deficit. In 2024, Switzerland’s total goods exports to the U.S. exceeded $63 billion, making it America’s 13th largest trade deficit partner—a figure that has drawn Trump’s ire.
According to Swiss customs data, the U.S. is a crucial trade partner, accounting for 18.6% of Switzerland’s total exports last year. The primary contributors to the U.S. deficit with Switzerland are chemicals, pharmaceuticals, and gold exports.
Wild added, “All our refining members have medium- to long-term plans for further investment in the United States.”
Regarding the low-margin business of recasting bars, Wild acknowledged that such operations would struggle to be viable in the U.S. without government subsidies.
However, some refiners are considering accelerating their U.S. investment plans in response to the Swiss government’s negotiation strategy. A source familiar with the matter revealed that at least one refiner is weighing such an acceleration.
Simultaneously, the Swiss government is actively seeking concessions in other areas, including pharmaceuticals, energy, and agriculture, to alleviate tariff pressure.
Swiss pharmaceutical giants Roche and Novartis have already announced plans to invest tens of billions of dollars in the United States over the next five years to mitigate the impact of tariffs.
