The United States has imposed tariffs on imports of one-kilogram gold bars, according to a report by the Financial Times, raising fresh uncertainty in the global bullion trade and delivering a new blow to Switzerland’s precious metals sector.
The move, outlined in a July 31 ruling from the US Customs and Border Protection (CBP), marks another unexpected twist in President Donald Trump’s aggressive push to overhaul international trade. News of the decision sent New York gold futures soaring to record highs.
Until now, many bullion traders assumed that gold bars weighing one kilogram or 100 ounces would be spared from Trump’s previous tariffs including the surprise 39% country-specific duty imposed on Switzerland. Instead, the CBP ruling classified these bars under customs codes that make them subject to tariffs, the FT reported, citing a letter that detailed the change.
Bloomberg has not independently verified the letter’s contents, and it remains unclear when the tariffs take effect, whether they apply globally, or if there are potential workarounds. Market participants are scrambling to understand the implications.
“Gold moves constantly between central banks and reserves worldwide,” said Robert Gottlieb, a former precious metals trader and managing director at JPMorgan Chase & Co. “We never imagined it would be hit with a tariff.”
The Trump administration has built a patchwork of import levies, often implemented with little warning and at varying rates, leaving markets on edge. Just last month, US copper futures fell sharply after the White House unexpectedly exempted refined copper the most actively traded form from a planned 50% tariff.
The new gold duties have already disrupted trade flows. Executives at two major Asian gold refineries, speaking anonymously due to the sensitivity of the issue, said they have halted shipments to the US while awaiting further clarity.
One-kilogram bars are the most traded format on Comex, the world’s largest gold futures exchange, and represent the bulk of Switzerland’s bullion exports to the US. This latest measure adds to the pressure on Swiss President Karin Keller-Sutter, whose country received the steepest country tariff among developed economies.
Keller-Sutter traveled urgently to Washington on Thursday in an attempt to persuade US officials to reconsider the tariffs. However, she was denied a meeting with President Trump and returned without securing any concessions.
The decision comes during an already volatile year for gold, and it immediately widened the gap between US and global prices. On Friday, the premium for December gold futures in New York surged to more than $100 an ounce above the London spot benchmark as traders bet that tariffs would disrupt import flows.
The reaction across the industry was one of surprise and confusion. “This is a dramatic change, and some think it could be a mistake on CBP’s part,” said David Wilson,senior commodities strategist at BNP Paribas SA.
Tariffs are determined by a highly detailed classification system that assigns unique codes to imports and exports. According to the FT, the CBP letter placed one-kilogram gold bars under code 7108.13.5500 rather than the previously expected 7108.12.10. The shift reclassifies them as “semi-manufactured” instead of “unwrought” gold under the US International Trade Commission’s definitions a change that carries tariff implications.
It is still unclear whether other bar sizes, such as the 400-ounce bullion widely traded in London, will be affected. If larger bars remain tariff-free, they could be shipped into the US and then recast into one-kilogram blocks domestically, effectively bypassing the new import duty.
One senior refinery manager, speaking anonymously, noted that this approach could quickly become a workaround if the rules allow it. However, such a shift could also disrupt traditional supply chains and introduce new costs for refiners and traders.
The US tariff decision underscores the growing unpredictability of global trade policy under Trump. While intended to bolster domestic economic interests, these measures often trigger ripple effects across international markets particularly in commodities like gold, where pricing is sensitive to even minor changes in supply and demand.
For Switzerland, the world’s largest gold refining hub, the tariffs threaten a critical export market. For global bullion traders, the sudden policy shift raises operational challenges, from securing compliant supply chains to managing volatile price differentials between New York and London.
With no immediate resolution in sight, market participants will be watching closely for official clarification from US trade authorities. Until then, uncertainty over the scope and enforcement of the tariffs is likely to keep gold prices elevated and trading volumes volatile.
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