Swiss Gold Retaliation: A Bold Proposition

Switzerland's gold industry is skeptical of a proposal by Swatch's CEO to impose a tax on gold exports to the U.S. in retaliation for new tariffs on Swiss goods. The Swiss Economy Ministry and industry leaders warn of potential damage to Switzerland’s economy and reputation as a free trade advocate.

The Swiss gold industry has expressed skepticism over a proposal by Swatch CEO Nick Hayek to implement a levy on gold exports to the United States as a counter measure against U.S. tariffs. The proposition arose after President Donald Trump imposed 39% tariffs on imported Swiss goods, causing considerable concern in Switzerland.

While the U.S. initially suggested tariffs on widely-traded gold bullion bars, Trump later declared that gold would be exempt. Nevertheless, Hayek insists that a gold export tax targeting Trump's claimed 'Achilles' heel' could pressure the U.S. into trade concessions beneficial to Switzerland.

However, the Swiss Association of Manufacturers and Traders in Precious Metals voiced concern over potential economic harm and damage to Switzerland's trade-friendly reputation. The Swiss Economy Ministry refrained from commenting on the proposal but reiterated the importance of U.S.-Swiss economic relations.

(With inputs from agencies.)