Reversal follows market jitters over customs ruling
President Donald Trump has stepped in to remove gold from the latest round of U.S. import tariffs, quashing fears that the precious metal would face new trade duties. In a post on Truth Social, Trump declared, “Gold will not be Tariffed!”, ending several days of uncertainty that had pushed bullion prices to historic highs.
The move reverses a recent U.S. Customs and Border Protection decision that would have classified certain gold bars—specifically 1-kilogram and 100-ounce cast bars from Switzerland—as subject to the administration’s 39% import tariff. These bars, widely used to settle futures contracts on COMEX, are a cornerstone of the global gold trade.
Prices retreat after record high
Gold futures, which had surged on news of the customs ruling, fell 2.48% on Monday to $3,404.70 per ounce after Trump’s announcement. The earlier price spike had been fueled by concerns that the tariffs could apply not only to Swiss bullion but also to similar gold products from other exporting nations, creating ripple effects across the global supply chain.
Industry representatives, including the Swiss Precious Metal Association, had warned that imposing duties could slow international shipments and disrupt trading flows for investors, refiners, and central banks alike.
Positioning gold outside trade battles
The exemption marks a rare carve-out from Trump’s August 7 package of “reciprocal” tariffs aimed at dozens of U.S. trading partners. While many sectors remain exposed to higher import costs, gold’s removal appears designed to protect a market that underpins financial stability and investor confidence.
Analysts note that unlike consumer goods or industrial components, gold’s role as a global reserve asset makes it uniquely sensitive to trade barriers. Even minor disruptions in its movement can trigger significant price volatility and complicate settlement in global markets.
