Why did Switzerland hit with 39% tariff?
US President Donald Trump’s argument is straightforward. They believe that the United States trade partners benefit from extensive access to the American market, while often restricting their own access, constantly creating trade imbalances.
In the case of Switzerland, Trump banned the trade deficit of $ 48 billion (€ 41.2 billion) of Alpine Nation, which he said that Swiss firms were taking the “benefits” of the US. For him and to address the imbalance of the country, he put much more tariffs on Swiss imports compared to 15%of the European Union.
At 39%, the tariff rate is the highest in developed countries and can cause major damage to trade with the most important trading partner of the US, Switzerland. About 18% of Swiss exports crossed the Atlantic last year.
Despite the intensive dialogue by President Karin Keller-Sater and a high-day trip to Washington, Switzerland failed to make a outline deal like the European Union, Japan or the United Kingdom.
Keller-Sater also could not make an appointment with Trump and instead met with US Secretary Marco Rubio, who does not oversee the trade policy, and went empty-handed.
Tariff, which came into effect on Thursday (August 7, 2025), with the expected value of watches, skincare and cosmetics, precise equipment and chocolate, luxury and consumer goods make luxury and consumer goods the most difficult.
Why is Swiss gold problem?
Although with gold, silver and pharmaceuticals, the current is exemplary from Trump’s tariff, the Swiss Gold Refining Sector has come into the limelight as it plays a surprisingly big role in the economy, making business imbalances great.
The Trump administration has counted a billion dollar gold passing through Switzerland every year in its tariff calculation.
On its face, Swiss makes a fortune a fortune by refining gold from Africa, Asia, Australia and South America.
More than two thousand tonnes of gold is imported annually, most of it is from intermediate banks in London, New York and other places, and later selects again.
Despite being the world’s largest gold refining hub, Switzerland has a small gold sector, with about five major refiners employ about 1,500 people.
While the value of precious metal is processed, Swiss refiners say that the benefits that they do on the processing of gold in the exact parts for bullion bar, investment-grade coins and watchmaking, electronics and jewelry are small.
Recently growing demand for gold globally has promoted refining in Switzerland, more disdiction of trade data.
Is Washington Switzerland’s gold trade incorrectly presenting?
The Swiss National Bank (SNB) argues that gold should be excluded from the tariff calculation of Washington as the refiners earn just a small fee to process the metal.
Most value comes from gold, not Swiss labor or production, SNB.
Although the total value of Switzerland’s trade in the US in the US in the first quarter of this year is more than $ 36 billion, which is two-thirds of the trade deficit-Industry is earning a profit of a few hundred million dollars per year.
The remaining trade deficit is mostly made up of the export of pharmaceuticals, watches and accurate-engineer goods.
Simon J, a professor of geopolitics and strategy at Lozen-based and Business School. Annit told Bloomberg that “Gold is special,” as it is not really built in Switzerland. Processed is a better word. “
Despite the call to sleep to not be included in trade balance data, Washington does not yet desire to change the course.
How has the Swiss business community reacted?
Non-gold producers from Switzerland argue that they will take a hit from tifs, even if they are not mostly guilty of imbalance.
Business Association Economyasuis has urged the government to continue negotiations with the aim of cutting tariffs, which are going to have a serious impact on economic growth.
For economists at the Zurich-based coffee Swiss Economic Institute, Hans Garsback estimated that Levi cut Swiss GDP from 0.3% to 0.6% compared to next year, if they stayed for a long time.
Swiss products soon want to be unpredictable for similar goods produced in American Consumers vs. European Union or Britain, which made a 10% tariff deal.
London -based capital economics estimated that the negotiaters would probably bring down the 39% tariff rate, but Switzerland would have to accept a higher rate than the 27 -member European Union block.
How does Swiss respond to Trump’s tariff?
The Federal Council, the Swiss Executive Branch held an emergency meeting on Thursday afternoon after the unsuccessful Washington visit of Keller-Sater.
After the meeting, the council said that it is currently not using Taff Countercers in response to 39% tariffs.
In a statement, the council said that the government would focus on relief measures for export-oriented Swiss businesses and continue interacting with Washington to find solutions.
According to the Reuters News Agency, during the most recent negotiations, one promise of an increase in investment of $ 150 billion in the US fell on the deaf ears.
Citing sources in the Trump administration, the proposal for a 10% tariff rate of Keller-Sater rejected by the US office.
In order to show goodwill against Lump Taf, the government also dropped the Tarley All US imports last year, which gives us the producers almost free access to Swiss markets.
Even they swam us the idea of import of liquidized natural gas (LNG), even though Switzerland is a landlock country that presents a logical challenge.
Now the voices demanding the counterers are increasing loudly. Green party leader Lisa Mazon has proposed 5% export duty on precious metals to unbalance the impact of Trump’s tapifies.
How do new tariffs affect global trade in gold?
Along with protecting himself from Trump’s tariff, Switzerland’s refining sector can continue operating without disintegration.
The irony is that 39% of the levy can help in demanding gold internal because more investors seek safe-heaven property during the period of uncertainty.
However, business tensions against people and ongoing business tensions have increased the cost of shipping, insurance and financing, which can still be higher.
Gold is often sent to a small, high-value consignment. Even a minor route changes, such as during recent red ocean attacks, can add thousands of costs per shipment.
The cost of thesis will not cripping the gold sector, but the narrow profit wants to eat in the margin.
Edited by: Ashutosh Pandey
