Switzerland’s current account surplus shrank sharply in Q2 2025, dragged down by turbulent swings in gold trade linked to fears over U.S. tariff policy. According to data released by the Swiss National Bank (SNB) on Tuesday, the surplus dropped to 10 billion Swiss francs ($12.6 billion) between April and June—less than half the 25 billion francs recorded a year earlier.
As the world’s leading bullion refining and transit hub, Switzerland handles nearly one-third of global gold production. Early this year, its gold exports surged as traders rushed to ship bullion worth billions of dollars to the U.S., the U.K., and other markets. The moves were aimed at hedging against the risk of Washington extending President Donald Trump’s sweeping import tariffs to cover gold.
That risk evaporated in April when the U.S. confirmed bullion would be excluded from the tariff list. The decision triggered reverse flows of gold back to Switzerland and Britain, swinging the balance of trade.
The SNB noted that both receipts and expenses in gold trading rose during the quarter, but expenses outpaced earnings by a wide margin. Switzerland booked 28.2 billion francs in gold export credits, while expenses climbed to 38 billion francs, resulting in a 9.7 billion franc deficit in the precious metals segment.
Despite the volatility, gold shipments have remained relatively steady in Q3, though monthly deliveries to the U.S. continue to fluctuate.
Economists pointed out that while the sharp fall in the surplus is notable, it is unlikely to dent Switzerland’s long-term financial stability. “The surplus decline is mainly a reflection of temporary gold market swings,” said UBS economist Maxime Botteron. “With U.S. tariff fears easing, gold is becoming less of a driver, and we expect conditions to normalize.”
The Swiss Precious Metals Association (ASFCMP) echoed this view, highlighting the cyclical nature of trade flows. “Typically, Switzerland imports more gold from the U.S. than it exports,” explained Christoph Wild, ASFCMP President. “But in periods of heightened uncertainty or crisis, demand spikes in the U.S., and we see the opposite pattern.”
Switzerland’s long-standing current account surplus has historically supported the strength of the Swiss franc, as foreign buyers convert into francs to pay Swiss suppliers. Analysts say the latest dip reflects short-term turbulence rather than a structural shift, reinforcing Switzerland’s role as a cornerstone in the global bullion trade.
Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.
