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Some are hoping that Swiss gold processors - here Argor-Heräus in Mendrisio TI - will be able to reduce the Swiss trade surplus with the USA and thus reduce the customs burden.
KEYSTONE
The proposal to process Swiss gold in the USA in order to reduce trade surpluses is meeting with resistance in the industry. Uncertainties about US tariffs on gold are exacerbating the situation.
Switzerland's trade surplus with the USA is the reason for the horrendous 39% tariff that Trump has imposed on Swiss exporters. In addition to the pharmaceutical industry, Swiss gold manufacturers also have a significant share in this.
So how does Switzerland get this surplus down? Former Swiss ambassador Thomas Borer has drawn up proposals for this, reports the NZZ. One of them: Swiss gold companies should outsource part of their processing, such as remelting, to the USA. As a result, their end products would no longer be considered imports in the USA, and the trade deficit between the USA and Switzerland would be reduced.
However, the Swiss gold industry does not think much of Borer's proposal. Christoph Wild, President of the Association of Precious Metals Manufacturers and Traders, explains that additional refining capacities in the USA do not make sense due to existing overcapacities worldwide. The major companies such as Argor-Heraeus, Metalor and MKS Pamp do not comment directly on the plans, but emphasize the importance of the Swiss-made label as a sign of quality.
It is also worth remembering how the US Customs and Border Protection agency reported that gold bars from Switzerland would be subject to an import tax, which President Trump denied shortly afterwards. The gold industry would therefore currently have nothing to gain from embarking on the adventure of relocating production to the USA. However, the situation does not offer any legal certainty either.
This uncertainty about US tariffs on gold has further complicated the situation. In July, gold exports to the USA rose unexpectedly, although the industry acted cautiously due to the unclear legal situation. Martin Wild suspects that a larger bank may have taken on the risk, as the refineries often do not know what the gold is destined for.
Gold refineries in Switzerland process an estimated 30 to 40 percent of the world's gold. In addition to smelting and minting gold bars, they are also active in the production of alloys for the jewelry and watchmaking industries as well as in dental and electrical engineering. Despite the current challenges, the industry remains an important part of the Swiss economy.
Politicians such as Lisa Mazzone, President of the Green Party, and FDP National Councillor Hans-Peter Portmann and business representatives such as Swatch have also made proposals to reduce the export surplus - by making exports more difficult, with restrictions or export taxes.
But the gold industry does not want to hear about this either. Its representatives warn that such measures could significantly damage the industry and its 2,200 jobs.
Borer presented his plan as part of a strategic project that is supposedly supported by the Federal Council. However, the government has not yet officially commented on it. Instead, it is relying on quiet negotiations with the USA. However, Borer's proposals, which according to the NZZ were developed in collaboration with the head of Seco, Helene Budliger Artieda, remain a possible starting point for the talks.
