Swiss Gold Refiners Face Impacts from US Tariffs on Precious Metals Imports

Swiss Gold Exports to US Surge, Fueling Trade Dispute with Trump

Geneva, Switzerland – A dramatic surge in Swiss gold exports to the United States has become a central point of contention in a burgeoning trade dispute with former President Donald Trump, who recently announced new tariffs on Swiss goods. Data reveals a near-doubling of gold shipments to the US in 2024, followed by an unprecedented spike in the first quarter of 2025, before a sharp decline.

According to Swiss Federal Customs Administration data, Switzerland exported 11 billion Swiss francs ($12.1 billion USD) worth of gold to the US in 2024, almost double the 6.1 billion francs recorded in 2023. This trend accelerated dramatically in early 2025, reaching a staggering 39.2 billion francs in the first half of the year – a massive increase compared to the 1.7 billion francs exported during the same period in 2024. The bulk of this surge, 37.6 billion francs, occurred in the first quarter alone, with shipments falling sharply to 1.6 billion francs in the second quarter.This export boom directly correlates with Donald Trump’s victory in the November election, triggering a wave of “safe haven” investment into gold as global economic uncertainty rose.

Switzerland is a global leader in gold refining, processing unrefined gold from mines, recycled jewelry, and lower-purity bars into high-quality gold bars.In 2023, the country accounted for 34% of the world’s total refined gold, importing 2,372 tonnes and re-exporting 1,564 tonnes, valued at approximately 88 billion Swiss francs ($109 billion USD). Major buyers include china (25.1 billion francs) and India (13.1 billion francs).The Swiss gold industry supports 1,500 direct jobs and 1,000 indirect jobs, according to the Swiss association of manufacturers and traders of precious metals.

Swiss President Karin Keller-Sutter has publicly disputed Trump’s assessment of the US trade deficit with Switzerland, arguing that the recent surge in gold exports – and the resulting increase in the deficit – was an atypical circumstance. Le Temps, a Swiss newspaper, reported that the White House appears to have based its tariff calculations solely on the anomalous 2024 data.

Beyond the Headlines: Switzerland’s Role in the Global gold Market

Switzerland’s prominence in the gold trade isn’t accidental.Its political neutrality, robust financial infrastructure, and highly skilled refining industry have established it as a crucial hub for the global precious metals market. The country’s four major refineries – with Valcambi as the largest – play a vital role in ensuring the quality and traceability of gold circulating worldwide.

This refining process isn’t simply about creating gold bars; it’s about facilitating the flow of gold into various sectors, including jewelry, watchmaking, industrial applications, technology, banking, and central bank reserves.

The current trade dispute highlights the complex interplay between geopolitical events, investment flows, and international trade.The volatility in gold exports underscores the metal’s enduring role as a safe haven asset during times of uncertainty, and the potential for such fluctuations to significantly impact trade balances.

What are the primary motivations behind the US imposing tariffs on gold, silver, and platinum group metals imports?

The New Tariff Landscape: A Breakdown

in a significant shift for the global precious metals market, the United States recently implemented tariffs on imports of gold, silver, and platinum group metals (PGMs) from several countries, including Switzerland. These tariffs, ranging from 0% to 10% depending on the origin, are designed to address trade imbalances and bolster domestic production. Though, the impact on Swiss gold refiners – a cornerstone of the global refining industry – is ample. Switzerland is a major hub for gold refining, processing a significant portion of the world’s precious metals. The new tariffs introduce complexities and costs that are reshaping the industry.

How Swiss Refiners Are Affected

swiss refiners, renowned for their high standards of gold purity and responsible sourcing, are now navigating a challenging environment. Here’s a detailed look at the key impacts:

Increased Costs: The most immediate effect is the direct cost of tariffs on gold exports to the US. This increases the price of Swiss-refined gold for american buyers, potentially reducing demand.

supply Chain Disruptions: Refiners are reassessing their supply chains to minimize tariff exposure. This includes exploring option routes for exporting to the US, potentially through countries not subject to the tariffs.

Reduced Profit Margins: Absorbing some of the tariff costs to remain competitive in the US market will inevitably squeeze profit margins for Swiss refiners.

Shift in Trade Flows: The tariffs are likely to cause a shift in global trade flows, wiht gold potentially being redirected to countries with more favorable trade agreements with the US.

Impact on LBMA Good Delivery: Switzerland hosts a large number of LBMA Good Delivery refineries. Maintaining this status requires adherence to strict standards, and the tariffs add another layer of complexity to operations.

Key Players and their Responses

Several prominent Swiss gold refiners are adapting to the new reality.

Valcambi: One of the world’s largest refiners, Valcambi is reportedly diversifying its export markets and focusing on strengthening relationships with customers in Asia and the Middle East.

Argor-Heraeus: This refinery is exploring options for establishing strategic partnerships with US-based companies to mitigate the tariff impact.

MKS PAMP: MKS PAMP is actively engaging with industry associations and government officials to advocate for a review of the tariffs.

These companies are also investing in technology and innovation to improve efficiency and reduce costs, helping them to offset the financial burden of the tariffs. Swiss gold is known for its quality, and these refiners are determined to maintain that reputation.

The Role of the Swiss Government & Industry Associations

The Swiss government has expressed concerns about the US tariffs and is engaging in diplomatic efforts to address the issue. the Swiss Refineries Association (SRRA) is actively lobbying for a resolution, emphasizing the importance of free trade and the detrimental effects of protectionist measures. They are highlighting Switzerland’s commitment to responsible gold sourcing and its role in combating illicit financial flows.

Impact on Gold Prices & Investment Demand

The tariffs have contributed to volatility in gold prices. While gold is often seen as a safe-haven asset, the increased costs associated with importing gold into the US could dampen investment demand in the short term. However, long-term demand for gold is expected to remain strong, driven by factors such as inflation, geopolitical uncertainty, and central bank purchases. Gold investing remains a popular strategy for portfolio diversification.

Alternatives and Mitigation Strategies for refiners

Swiss refiners are exploring several strategies to mitigate the impact of the tariffs:

1. Diversification of Export Markets: Expanding sales to countries outside the US, such as China, India, and the UAE.
2. Strategic Partnerships: Collaborating with US-based companies to establish local refining or distribution operations.
3. Supply Chain Optimization: Sourcing gold from countries not subject to the tariffs.
4. Hedging Strategies: Utilizing financial instruments to hedge against currency fluctuations and tariff-related risks.
5. Focus on Value-Added Services: Offering specialized refining services, such as the recovery of precious metals from electronic waste, to differentiate themselves from competitors.

The Future of Swiss Gold Refining

The US tariffs present a significant challenge to the Swiss gold refining industry,but also an chance for innovation and adaptation. The long-term impact will depend on several factors, including the duration of the