Switzerland says tariff talks with US continue, gold industry concerned about bullion trade

Switzerland is continuing discussions with the US about reducing potentially crippling import duties, its government said on Friday, as the country’s gold industry warned exports of gold bars to the US could be severely impacted by a 39% tariff.

The tariff talks in Washington are being led by Helene Budliger Artieda, head of the State Secretariat for Economic Affairs (SECO), and come after the import levy- among the highest of any applied under President Donald Trump’s global trade reset- took effect on Thursday. A last-ditch Swiss trip led by President Karin Keller-Sutter failed to produce a better deal.

“Discussions with the United States are ongoing,” SECO said in a statement to Reuters on Friday. “The discussions have consistently focused on reducing the additional US tariffs.”

SECO said it would give no further details on the talks, which could include further concessions Switzerland may offer the US in return for lower tariffs. No discussions were scheduled for Friday, although they are due to continue next week on a technical level, a Swiss source said, without giving further details.

The Swiss precious metals association on Friday said it was concerned about an increase in tariffs on gold exports to the US to 39%. Gold bars of 1 kg and 100 oz were previously exempt from US tariffs, but country-specific tariffs may now apply.

Switzerland is the world’s largest gold refining centre, with up to 70% of gold produced annually worldwide melted down and processed at the five refineries in the country. The country imports gold bars and resizes them for the US market. Switzerland exported gold bars worth 7.86 billion Swiss francs ($9.7 billion) to the US last year, according to customs data.

“We are particularly concerned about the implications of the tariffs for the gold industry and the physical exchange of gold with the US, a long-standing and historical partner for Switzerland,” said Christoph Wild, president of the Swiss Association of Manufacturers and Traders in Precious Metals. “With a tariff of 39%, exports of gold bars will definitely be stopped to the US,” Wild told Reuters.

Economist Hans Gersbach, from the KOF Economic Institute at ETH, a university in Zurich, estimated that 7,500 to 15,000 jobs could be lost in Switzerland as a result of the US tariffs.

“The effect will be severe in some industries like watches, machinery and precision instruments,” Gersbach said. “If pharma was also targeted, the figure would be higher,” he added, although no figure has yet been calculated.

Switzerland’s giant pharmaceuticals sector, which includes Roche and Novartis, made up half of Swiss exports to the US last year, and has not been included in the US tariffs. Business association Economiesuisse held a seminar earlier this week to help companies navigate the tariff turmoil. Companies were very concerned, but were focused on trying to find solutions, said Economiesuisse board member Jan Atteslander.

“We still have difficulties understanding this friendly fire, but we are working on ways to cope with it,” Atteslander said. US importers would increase their prices for Swiss products to deal with the tariff impact, Atteslander said, which could lead to lower sales, while profit margins would also be cut.

Companies were speaking with their US customers as well as examining shifting their production from Switzerland to Europe or Britain, which have lower tariffs on US-bound products. The crisis is the latest shock to hit Swiss companies, which have long battled an appreciating Swiss franc, which makes its products more expensive abroad, said Atteslander.

“Our companies are always under heavy pressure, so the only way to survive is to innovate,” he said.