Switzerland Proposes U.S. Gold Refining Investment to Help Dial Back Trump Tariffs

Switzerland has proposed that its gold industry either build a refinery in the United States or add refining capacity there as part of a package aimed at persuading the U.S. to roll back steep tariffs, two people familiar with the discussions said.

The proposal is intended to narrow the U.S. goods trade deficit with Switzerland, a key rationale President Trump cited when he imposed 39% tariffs on Swiss imports on Aug. 7. Swiss officials and private-sector representatives have been negotiating with U.S. counterparts to present a mix of increased U.S. sourcing, investment and procurement that would reduce the bilateral imbalance, the sources said on condition of anonymity because the talks are sensitive.

Switzerland is a leading global refiner of gold, and the plan would channel some of that refining activity to the United States either through a new U.S.-based plant or by financing extra processing capacity on U.S. soil, the people said. Swiss Economy Ministry officials confirmed that confidential talks with Washington were ongoing at various levels but declined to comment on specific proposals.

Christoph Wild, president of the Swiss precious metals association ASFCMP, declined to confirm whether a U.S. refinery would be built but said the industry needed to explore ways to prevent gold from inflating the deficit. "This could even be by meeting U.S. demand from within the United States," Wild said.

Swiss Economy Minister Guy Parmelin described talks with senior U.S. economic officials last week as "constructive," according to a statement from Bern. The gold-refining proposal was reportedly on the table during those discussions.

Officials said the Swiss package under discussion goes beyond precious metals. To address the larger portion of the goods deficit driven by pharmaceuticals and chemicals, Switzerland is proposing that Swiss firms meet U.S. demand with products manufactured in the United States. That could involve expanding U.S.-based production enough to allow Swiss drugmakers to export from U.S. facilities, the people said, and potentially secure exemptions if the U.S. moves forward with a Section 232 inquiry into drug-supply dependence on foreign production.

Swiss officials also envisaged bolstering procurement of U.S. military equipment and facilitating greater sales of U.S. liquefied natural gas to Switzerland. Another element under discussion would be routing more energy trades through Switzerland rather than through London, which officials said would help rebalance recorded trade flows.

Swiss pharmaceutical industry association Interpharma cautioned that when services are taken into account, Switzerland does not run a meaningful deficit with the United States and warned that forcing firms to relocate production could harm Switzerland's position as a pharmaceutical hub. The group noted, however, that there is an industry trend toward producing locally for large markets.

The U.S. tariffs targeted a wide range of Swiss goods after Bern removed its industrial tariffs earlier in the previous year, a move Washington said widened the bilateral imbalance. Swiss exports of chemicals, pharmaceuticals and refined gold account for the bulk of the recorded U.S. shortfall.

Negotiators from both sides continue to refine proposals intended to demonstrate visible increases in U.S. sourcing and investment. Swiss officials have framed their offering as a combination of private-sector investment and greater purchases of American goods and services.

It was not clear how quickly any U.S. investment in gold refining could be established or scaled up, or whether proposals to relocate pharmaceutical production would be acceptable to Brussels or to U.S. regulators. Swiss and U.S. officials did not provide timetables for potential tariff relief, and the Swiss Economy Ministry reiterated that discussions remain confidential.

The developments underscore how trade disputes are increasingly being negotiated with targeted industrial solutions meant to shift production footprints rather than relying solely on tariff adjustments. Both sides signaled interest in continuing talks, and sources said further meetings were planned as negotiators sought a balance between preserving Switzerland's industrial strengths and addressing U.S. concerns about the bilateral trade gap.