The precious metal gold, notably Swiss gold, has become the latest casualty of Trump tariffs. The United States has placed duties on imports of one-kilo gold bars, threatening to disrupt the global bullion market and give a new blow to Switzerland, the world’s largest refining hub, reports Financial Times.
Switzerland shipped $61.5 billion in gold to the United States in the year ended in June. The same volume would now be subject to an additional $24 billion in tariffs under Switzerland’s 39% tariff rate, which took effect on Thursday.
According to a so-called ruling letter dated July 31 and seen by the Financial Times, one-kilo and 100-ounce gold bars should be categorized under a customs code susceptible to charges. The US uses ruling letters to clarify its trade policies.
Swiss Gold Tariffs
Tariff on gold in the recently announced ruling pertains to imports only from Switzerland and will apply to one-kilo and 100-ounce gold bars.
One-kilo bars are the most prevalent form traded on Comex, the world’s largest gold futures exchange, and account for the majority of Switzerland’s bullion exports to the United States.
The most active contract, Comex gold futures for December delivery, rose to an intraday record high of $3,534 per troy ounce on Friday after the Financial Times reported the US customs authorities’ decision.
Switzerland Gold Trade
Gold is one of Switzerland’s largest exports to the United States, according to customs data.
Traders rushed to bring gold into the US ahead of Trump’s “liberation day” tariffs, causing a temporary gold shortage in London.
However, the tariffs included exemptions for many commodities, including a classification of bullion that was widely interpreted to cover large gold bars.
The global trade flow for bullion is typically triangular, with large bars traveling between London and New York via Switzerland.
Gold has experienced a historic 42% rise since August 2024, driven by inflation, US government debt concerns, and the decline of the US dollar as a reserve currency, contributing to its surge.
A Swiss refinery requested clarification on one-kilo and 100-ounce bars, which were ruled to fall under classification code 7108.13.5500, but not under code 7108.12.10, which is the only code exempt from duties, reported Financial Times.