Swiss gold industry warns against Swatch boss's US gold tax proposal
U.S. President Donald
Trump
last week imposed tariffs of 39% on imported Swiss goods, causing shock and dismay in the Alpine republic, a major refining and transit hub for gold.
The U.S. Customs and Border Protection afterwards said Washington might put tariffs on the most widely-traded gold bullion bars in the United States. However, Trump said on Monday that gold would not face tariffs.
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Swatch CEO Nick
Hayek
told Swiss newspaper Blick that Trump's announcement indicated that tariffs on gold would be painful for the U.S. president.
"Now is the time to go on the offensive. Switzerland should order a 39% export tax on gold bars for the United States," Hayek told the paper. "That's where we have to get at him. That's his Achilles' heel."
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The Swiss Association of Manufacturers and Traders in Precious Metals (ASFCMP) said that while ideas to better balance bilateral trade were welcome, careful consideration needed to be given to Switzerland's longer-term interests.
"An export tax on Swiss gold destined for the USA would not only harm Switzerland economically, but also damage the reputation of a country that has consistently promoted and defended free trade," ASFCMP President Christoph Wild said.
The Swiss Economy Ministry declined to comment on the proposal, but said the support of business representatives was in general welcome and helped underscore the close economic ties between the U.S. and Switzerland.
Trump justified his 39% tariff by pointing to Switzerland's sizeable trade surplus with the United States. Part of that is due to gold exports.
Hayek said that even if a gold levy failed to move Trump, it would cut the U.S. trade deficit with Switzerland.
"If Trump doesn't give in to our pressure, we'll at least improve the trade balance with the U.S. if the Americans no longer import gold bars via Switzerland," he told Blick.
Switzerland is continuing to hold talks with U.S. officials aimed at lowering the U.S. tariffs.
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Economic Times
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- Economic Times
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Trump, who is set to meet Russian leader Vladimir Putin on Friday at Joint Base Elmendorf-Richardson in Alaska, has long framed tariffs as a tool to 'fix trade deficits,' but India's case suggests a different motive. On August 7, the US announced it would raise tariffs on Indian goods from 25% to 50%, citing Delhi's purchase of Russian oil. India called the move 'unfair' and 'unjustified,' with the new rate set to take effect on August 27. The White House framed the tariffs as a way to cut Russia's energy revenues and pressure Vladimir Putin toward a ceasefire. With this increase, India becomes the most heavily taxed US trading partner in Asia, joining Brazil which faces similar steep tariffs amid tense bilateral relations. The economic stakes for India are high. In 2024, India exported $87 billion worth of goods to the US. 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Europe and US bans on petroleum products ensure India's imports will decline regardless of Washington's actions. Srivastava cautions, however, that the US may find new reasons for tariffs, keeping India under continuous has built a buffer against such pressures. Exports constitute roughly 20% of GDP, compared with 90% for Vietnam, a country far more vulnerable to US-imposed shocks. 'Vietnam will suffer more. We will suffer, but we will absorb it properly. Country will bounce back. All we need to do is not to surrender,' Srivastava US consumers will also feel the impact of tariffs. About 90% of prescriptions in the US rely on generics imported from India. While the total trade value may be under $10 billion, disruption affects the majority of prescriptions, potentially raising prices significantly. 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