Switzerland Proposes Gold Bar Production in US to Dodge Tariffs
Switzerland's economic ministry (SECO) has warned that the current US tariffs on Swiss imports could hinder the country's economic growth. The Swiss are grappling with a 39 percent tariff on their imports, one of the highest rates globally. In response, Swiss officials are proposing an innovative solution to lower these usbank tariffs.
The Swiss government is encouraging its gold refiners to produce 1 kilogram gold bullion bars for the US market on-site in the US. This move comes after the US Customs and Border Patrol ruled in late July that the tariffs would apply to these gold bars. The US has a significant trade deficit of approximately US$48 billion with Switzerland, which has been further impacted by these usbank tariffs.
The US tariffs target several of Switzerland's most iconic industries, including chocolate, luxury watches, coffee machines, and gold. Initially, the Swiss government had hoped to reduce the tariffs from 31% to 10%, but this was later increased to the current 39%. Despite attempts to negotiate lower usbank tariffs, specific details about the proposed measures remain unclear.
Following the US ruling, spot gold prices surged by more than 3 percent, reaching an all-time high in December futures. Christoph Wild, president of the Swiss Association of Precious Metals Producers and Traders, views the Swiss government's proposal as a mid-term to long-term solution.
The Swiss government's proposal to incentivize on-site gold refining in the US is a strategic move to mitigate the impact of high usbank tariffs on Swiss imports. While the details of the negotiations remain unclear, this proposal could potentially reduce the usbank tariff rate and boost Switzerland's economic growth outlook.
Read also:
- Web3 gaming platform, Pixelverse, debuts on Base and Farcaster networks
- Goodyear in 2025: Advancement in Total Mobility through the Launch of Kmax Gen-3 by Goodyear
- Boston Metal pioneers route to commercial production for eco-friendly steel method
- Electric SUV Showdown: Vinfast VF6 or MG Windsor EV - Your Choice Revealed
