Gold Tariff – On July 31, 2025, the U.S. Customs and Border Protection (CBP) issued a ruling reclassifying one-kilo and 100-ounce gold bars under a customs code subject to a 39% tariff, effective August 7, 2025.
This decision, stunned traders who expected these bars to remain exempt, driving COMEX gold futures to a record $3,534.10 per ounce on August 8.
Switzerland, the world’s largest gold refining hub, exported $61.5 billion in gold to the U.S. in the year ending June 2025, with these tariffs potentially adding $24 billion in costs. The ruling targets the most traded bullion units on COMEX, disrupting global gold flows.
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Gold Tariff – Impact on Swiss Gold Exports
Switzerland, responsible for 34% of global gold refining, faces severe trade disruptions. The Swiss precious metals association, led by Christoph Wild, warned that the 39% tariff could halt U.S. exports, which reached $9.7 billion in 2024. Swiss refineries, including Valcambi, have reduced or suspended shipments to the U.S. while seeking legal clarity.
The tariffs exacerbate Switzerland’s trade surplus with the U.S., which hit $48.3 billion in H1 2025, partly due to a pre-tariff gold rush. This surge caused a temporary London gold shortage, as traders stockpiled to avoid duties.
Gold Tariff – Economic and Industry Fallout
The tariffs threaten Switzerland’s economy, with economist Hans Gersbach estimating 7,500–15,000 job losses in gold-related sectors. The Swiss Association of Manufacturers and Traders of Precious Metals highlighted the strain on U.S.-Swiss trade relations, a historically strong partnership.
U.S. importers may pass higher costs to consumers, reducing demand for Swiss gold. Some refineries are exploring relocation to Europe, where EU goods face a lower 15% U.S. tariff, as seen in Antwerp. The tariffs also fuel inflation fears, boosting gold’s safe-haven appeal as spot prices hit $3,386.30.
Gold Tariff – Investor and Market Responses
Investors are shifting to gold ETFs and smaller bars to sidestep tariff costs, with Peter Schiff noting rising premiums on coins and smaller units. COMEX futures trading volumes surged, reflecting speculative interest.
The tariffs could tighten U.S. gold supply, pushing prices higher if alternative sources fail to meet demand. Swiss refineries are in talks with U.S. authorities to mitigate the impact, but no immediate exemptions are confirmed.
Investors should monitor U.S.-China trade talks, as broader tariff escalations could further elevate gold prices.
Gold Tariff – White House Clarification Efforts
A White House official indicated an upcoming executive order to address “misinformation” about gold tariffs, hinting at potential exemptions. However, details remain unclear, leaving markets volatile.
Swiss President Karin Keller-Sutter criticized the tariff calculations, noting that 2024’s atypical gold export surge skewed U.S. trade deficit assessments. Ongoing negotiations, led by Helene Budliger Artieda, aim to reduce duties, but no breakthrough has been achieved.
Gold Tariff – Strategic Considerations for Stakeholders
Investors should consider gold ETFs like SPDR Gold Shares (GLD) to avoid physical gold’s tariff-driven costs. Traders face higher premiums and liquidity challenges, while refineries may pivot to Asian markets.
The tariffs underscore gold’s role as a hedge against trade and inflation risks, but stakeholders must navigate short-term volatility. Monitoring U.S. policy clarifications and Swiss trade talks will be critical for strategic planning in 2025’s turbulent bullion market.
