Switzerland Proposes Gold Refining & Increased U.S. Production to Address Trade Imbalance with U.S.
GENEVA, Oct 28 – Switzerland is offering to build a gold refinery within the United States and considerably increase domestic production of pharmaceuticals by Swiss companies as part of a plan to address the U.S. trade deficit, according to sources familiar with the negotiations. The proposals were presented to top Trump administration economic officials during “constructive” talks held last Friday between Swiss Economy Minister Guy Parmelin and his U.S. counterparts.
The initiative aims to offset the impact of gold imports on the U.S. deficit. Wild, president of the Swiss precious metals association ASFCMP, declined to comment on the refinery plan specifically, but stated that the industry must explore ways to prevent gold from contributing to the deficit. “This could even be by meeting U.S. demand from within the united States,” he said.
Beyond gold, Switzerland is proposing to meet all U.S. demand for pharmaceuticals with products manufactured within the U.S., perhaps with enough surplus capacity to allow swiss firms to export from the country. This move is intended to shield Swiss pharmaceutical companies from potential tariffs stemming from a U.S.Section 232 investigation into national security concerns related to foreign drug reliance.
interpharma, the Swiss pharmaceutical industry association, argued that including services would reveal no actual U.S. deficit and that targeting the pharmaceutical sector would harm the Swiss economy. However, the association acknowledged a broader trend toward local production to serve large markets, noting increased U.S. capacity could diminish Switzerland’s role as a pharmaceutical hub.
The plan also includes increased procurement of U.S. military goods, facilitating greater sales of U.S. liquefied natural gas through Switzerland, and routing more energy trades through Switzerland instead of London to further balance trade.
Negotiations between the two countries are ongoing.