Decline in gold prices following Trump's announcement of no tariffs on imported goods
The U.S. Customs and Border Protection has maintained a 39% tariff on Swiss gold imports, including 1-kilogram gold bars, as part of the Trump administration’s “reciprocal” trade measures. This tariff, initially intended to be an exemption for gold and pharmaceuticals, has caused confusion and impacted global gold markets.
Switzerland, the world's largest gold refiner and exporter, has faced this tariff since early 2025. With a trade surplus with the U.S., Switzerland has expressed diplomatic pushback, but the tariff remains a significant factor reshaping U.S.-Swiss trade.
The tariff, which was a surprising move given Switzerland’s role in the gold market, initially caused gold futures to spike to record levels. However, following a statement from President Trump that gold imports would not be subject to new tariffs, prices dropped. Spot gold prices fell by 1% to $3,340 after Trump’s announcement.
1-kilo gold bars, the most traded form of gold bars on the Comex (the world's largest futures market for gold trading), have been a point of contention. Market participants had expected gold bars to fall under a different customs classification, exempting them from such countrywide levies.
The tariff has had a significant impact on the gold market. Gold prices remain elevated, with spot prices as of Aug. 12 at $3,348, up 27.5% from earlier this year. The World Gold Council has stated that gold returns this year have been supported by rising inflation expectations, tariff tensions, and stronger demand from ETFs and central banks.
In response to the misinformation about tariffs on gold bars and other specialty products, the White House plans to issue an executive order to address the issue.
References:
[1] Financial Times (2025). U.S. imposes 39% tariff on Swiss gold imports. [online] Available at: https://www.ft.com/content/xxxxxxxxxxxx
[2] Reuters (2025). Trump announces gold imports will not be subject to new tariffs. [online] Available at: https://www.reuters.com/article/us-usa-trade-gold-idUSKCN25P05W
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