On Monday, U.S. President Donald Trump announced that gold will be exempt from his tariff policies, a statement that immediately halted days of speculation and market volatility in the international precious metal sector. "There will be no tariffs on gold!" the President proclaimed on Truth Social, providing no further information.
This brief declaration was sufficient to reassure bullion traders and major refining centers like Switzerland, who were bracing for an unprecedented impact on global supply chains. Concerns erupted last Friday when the U.S. Customs and Border Protection (CBP) published a resolution on its website reclassifying one-kilo and 100-ounce bars under a tariff-eligible customs code.
This sudden measure placed gold on the same list of products affected by Trump's trade war, with potential tariffs reaching up to 39% for countries like Switzerland, the largest global exporter. According to elEconomista.es, this change threatened to disrupt the delicate balance of the international bullion trade, which flows from London to New York via Switzerland, where large 400-ounce bars are melted into smaller formats for the U.S. market.
The stakes were high, given that the U.S. imports over $60 billion worth of gold annually from Switzerland, putting those shipments at risk of additional duties totaling approximately $24 billion. Additionally, the fear of tariffs triggered a "seismic shift" in prices, with gold futures on the Comex reaching historic highs above $3,500 per ounce, significantly surpassing the spot gold prices.
Analysts warned that maintaining the measure could have led to the U.S. losing its dominance over the global futures market, potentially forever altering the traditional flow of bullion. "This will be a huge relief for bullion markets, as the potential disruption was incalculable," commented Ross Norman, an independent gold market analyst, as reported by EFE.
However, although Trump's announcement eliminates the immediate threat, some experts caution that the confusion caused by the CBP highlights cracks in the coordination of U.S. trade policy. Joni Teves, a strategist at UBS, noted that the episode leaves an open question regarding the U.S. role in the global precious metals trade.
For now, prices have retreated following the presidential message. U.S. gold futures fell 2.4% to $3,407 per ounce, while spot gold dropped 1.2% to $3,357.
Impact of Gold Tariff Announcement
What did President Trump announce regarding gold tariffs?
President Trump announced that gold would be exempt from tariffs, calming market concerns.
How did the market react to the announcement about gold tariffs?
The announcement led to a retreat in gold prices, with futures and spot prices both dropping.
Why was there concern about gold tariffs?
There was concern because the U.S. imports a significant amount of gold from Switzerland, and tariffs could have led to additional costs and market disruption.