Increase in gold prices due to new U.S. tariffs on Swiss bars

• Gold futures prices have reached record highs due to new tariffs.
• Switzerland is the leading exporter of gold bars to the U.S.
• The new tariffs may lead to a reduction in jobs in Switzerland.

Gold futures prices have reached record highs following the announcement of new U.S. tariffs on the import of gold bars weighing one kilogram. This decision, which was announced on July 31, has dealt a serious blow to the Swiss trade, as the country is the leading exporter of gold to the U.S.

The tariffs, which amount to 39%, have become the highest in the world after Brazil, Laos, and Myanmar. Switzerland, which holds about 70% of the global gold refining market, exported gold worth approximately $61.5 billion to the U.S. over the past 12 months. The introduction of new tariffs indicates that these export operations are now subject to additional costs amounting to $24 billion.

Since the announcement of the tariffs, gold prices have increased by over $100 per ounce. This cyclical phenomenon among exporters suggests that the new tariffs may become a tool for economic pressure on Switzerland and alter the balance of power in the global gold market.

Additionally, Swiss companies, which depend on exports, have already begun discussing the possibility of reducing working hours. Swiss President Karin Keller-Sutter reported that the country will continue negotiations with the U.S. regarding tariffs, as they have created "an extraordinarily challenging situation" for the company.

Tags: USA/Europe/Economy