Switzerland is looking for ways to lower U.S. tariffs that were imposed in August because of a trade deficit related to Swiss exports. These tariffs, now at 39%, mainly affect Swiss goods like pharmaceuticals and gold. To tackle this issue, Swiss officials are considering options to boost investment and production in the U.S. They are thinking about building or expanding gold refining operations in the U.S. There are also talks about increasing the production of pharmaceuticals in America to better meet U.S. demand.

Increasing US Investments

Part of the strategy includes buying more U.S. military equipment and liquefied natural gas. These efforts are part of ongoing talks, with Swiss representatives and U.S. officials having productive discussions. We remember the trade tensions from the Trump administration, which led to the 39% tariffs on Swiss goods. These events changed how Switzerland’s main industries, particularly gold and pharmaceuticals, engage with the U.S. market. The effects of those historical negotiations still impact key assets today. Right now, the strength of the Swiss franc is mainly influenced by the difference in policies between the Swiss National Bank and the U.S. Federal Reserve. Recent data from August 2025 shows Swiss inflation steady at around 1.8%, allowing the SNB to maintain a neutral stance, while the Fed continues to take a firm approach to manage its own inflation. This increasing gap in interest rates suggests that traders should look for continued strength in the USD/CHF pair, making long positions in futures contracts a practical strategy.

Structural Changes in Trade

The earlier proposal to build gold refineries in the U.S. has become reality, changing key parts of the supply chain. Data from the U.S. Geological Survey in the second quarter of 2025 shows that domestic gold refining capacity has grown by over 15% since 2022, leading to an 8% drop in Swiss imports. This structural change means that the implied volatility in gold options may not react as strongly to U.S.-Swiss trade news as it did back in the 2020s. Swiss pharmaceutical companies also moved forward with plans to expand production in the U.S., making their revenues less sensitive to import tariffs. Major companies reported in mid-2025 that over 60% of their U.S. supplies now come from domestic plants, a significant increase from 40% in 2020. Traders may see this as a stabilizing factor, resulting in slightly cheaper protective put options for these specific pharmaceutical stocks compared to their less localized European counterparts. Create your live VT Markets account and start trading now.

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