Gold has always been seen as a safe haven when markets get rocky, but this past week, the global gold trade was thrown into turmoil after the U.S. government announced new tariffs targeting gold imports—sending shockwaves from Wall Street to the heart of Switzerland’s gold industry. On August 7, 2025, gold futures soared to an all-time high of $3,534 per ounce, according to Reuters, after reports emerged that the White House was preparing an executive order to clarify and enforce tariffs on gold bars and related products.
At 7 p.m. that Thursday, December U.S. gold futures were already high at $3,452 per ounce, but just three hours later, they rocketed up to $3,534. The U.S. gold futures continuous contract has surged 40.05% over the past year, more than doubling the 19.99% gain of the E-Mini S&P 500 futures contract during the same period. This dramatic ascent underscores gold’s enduring appeal—but also highlights the volatility unleashed by trade policy uncertainty. As Susannah Streeter, head of money and markets at Hargreaves Lansdown, told Reuters, “Gold’s panic ascent shows that even safe haven assets are not immune to the volatility unleashed in the confusion of the tariff age.”
The White House is expected to issue an executive order soon, aiming to clear up widespread misinformation about the scope of the tariffs. But for now, the uncertainty is palpable. According to U.S. Customs and Border Protection, one kilogram and 100-ounce gold bars—staples of the global bullion trade—will not be excluded from the tariffs. This ruling applies to imports from all countries, not just Switzerland, but the impact on Switzerland is especially acute.
Why Switzerland? The answer lies in the tiny Alpine nation’s outsized role in the global gold market. Switzerland refines more than half of the world’s gold, despite not having any mines of its own. Instead, gold often travels from London, a major trading hub, to Swiss refineries, where it is transformed into bars that meet U.S. warehouse standards before being shipped across the Atlantic. In the past year alone, Switzerland exported over $61 billion worth of gold to the United States, according to Swiss National Bank data reported by CoinDesk. Two-thirds of Switzerland’s recent U.S. exports have been various forms of gold.
The new 39% U.S. tariff on Swiss gold—one of the highest rates in the world—has triggered alarm in Zurich, Geneva, Basel, and beyond. Christoph Wild, president of the Swiss Precious Metals Association, voiced the industry’s deep concern in a statement: “We are particularly concerned about the implications of the tariffs for the gold industry and the physical exchange of gold with the U.S., a long-standing and historical partner for Switzerland.” The association further clarified that the tariff applies to all one kilogram and 100-ounce gold bars imported into the United States, regardless of origin.
Trade tensions between the U.S. and Switzerland have been simmering for months. President Trump has repeatedly cited the growing U.S. trade deficit with Switzerland—now nearly $48 billion in the first half of 2025, up from $38 billion last year—as justification for targeting Swiss exports. In a recent phone call with Swiss President Karin Keller-Sutter, Trump reportedly stressed that Switzerland had not done enough to address the deficit. While gold is the main driver, Swiss pharmaceutical exports—led by giants like Roche and Novartis—are also significant, totaling around $35 billion last year. Trump has threatened to extend high tariffs to pharmaceuticals unless drugmakers lower U.S. prices and shift production stateside.
Swiss officials, for their part, are scrambling to negotiate a reduction in the tariffs. They are reportedly preparing a package of targeted investments in U.S. manufacturing, energy, and possibly military spending, hoping to mirror deals struck by other countries to secure lower tariff rates. Swiss pharma companies have already pledged billions in new U.S. investments, with Roche committing $50 billion for research, development, and manufacturing, and Novartis promising $23 billion over five years. Switzerland is also considering increasing imports of American liquefied natural gas and may even reduce gold exports as part of a broader deal.
Still, the mood in Switzerland is one of frustration and bewilderment. Economy Minister Guy Parmelin captured the sentiment on August 8, stating that Switzerland felt “especially mistreated,” but that the government was working to understand “what exactly the United States and Donald Trump want, and to see if there is room for maneuver.” The Swiss have even considered deploying executives with close ties to Trump—dubbed the “Mar-a-Lago Crew” by Swiss media—to help smooth negotiations.
This diplomatic and economic drama has had ripple effects far beyond the traditional gold market. In the week leading up to August 9, 2025, commodity-backed cryptocurrencies—especially those pegged to gold—experienced a historic surge in issuance. According to CoinDesk, minting volumes for gold-backed tokens like Tether Gold and Paxos Gold hit $439 million, more than doubling the previous record set in 2021. These digital tokens, backed by physical reserves stored in vaults, offer investors a way to gain exposure to gold and move assets instantly across borders—no customs agents or tariffs required.
At the height of the tariff uproar, Tether Gold and Paxos Gold briefly topped $3,390 before pulling back as the White House signaled that some gold imports could be exempted. Nevertheless, the stampede into gold-backed tokens reflects investor anxiety about the future of physical gold trading. The Swiss Precious Metals Association warned that the U.S. tariffs could have a “negative impact” on the international flow of gold, and the political backlash in Switzerland has been swift, with some lawmakers calling for the gold sector to help shoulder the economic fallout.
It’s not just gold that’s caught in the crossfire. Swiss precision machinery, watches, chocolates, and even Nespresso coffee pods are all part of a complex web of trade with the U.S. The Swiss watch industry alone sent more than $5 billion worth of timepieces to America last year. But gold remains the flashpoint, both for its symbolic value and its sheer scale in Swiss-U.S. trade.
As the world watches and waits for the White House’s next move, one thing is clear: the gold market is no longer just a barometer of economic anxiety, but a frontline in the global trade wars. Whether Switzerland and the U.S. can find common ground—or whether gold will remain ensnared in tariff turmoil—remains to be seen. For now, investors, traders, and policymakers alike are bracing for more volatility, both in the vault and on the blockchain.
