Trump Scrapped Planned Gold Assault on Switzerland
In a recent turn of events, U.S. President Donald Trump announced on his Truth Social platform that the U.S. will not impose tariffs on imported gold, a decision that has brought relief to the global market and the trade relationship between the U.S. and Switzerland.
Previously, a 39% tariff was announced by the Trump administration on imported gold bars weighing 100 ounces or more. This decision had caused significant disruption in the global gold market, leading to U.S. gold futures spiking to a record high of $3,534.10 per ounce on August 8, 2025.
The tariffs, if implemented, could have had a significant impact on Switzerland's gold industry. Switzerland, being the world's largest gold refining center, is the backbone of Switzerland's supplies to the U.S. market. The tariffs aimed to disrupt Switzerland’s dominance by making their refined gold more expensive in the U.S. market.
The decision not to impose tariffs has helped maintain the standard of one-kilogram bars on Comex in New York, the leading futures exchange for gold. It also ensures the smooth flow of gold supplies from Switzerland to the U.S. market, thus avoiding market disruptions.
The analytical report predicting this forecast is from Citi, as reported by Bloomberg. The gold price forecast for the next three months assumes fluctuations between $3300-3600 per ounce. As of 16:23 Moscow time on Monday, August 4, gold was trading at $3430.6 per ounce.
The tariffs on imported one-kilogram gold bars were initially affected by an explanatory letter from the U.S. Customs Service dated July 31. Shortly after the initial tariff news, the U.S. clarified that commonly traded smaller gold bars would not be subject to the tariffs, which somewhat eased concerns and led to a dip from the peak futures price.
Christoph Wild, president of the Swiss Association of Precious Metals Producers and Traders, called the decision not to impose tariffs on imported gold a positive development for trade between the U.S. and Switzerland. This decision is being seen as a use of tariffs as a 'Swiss Army knife of diplomacy'.
The surge in gold prices in April 2025 was driven by a new wave of dollar weakness, criticism of the Fed by U.S. President Donald Trump, and lingering concerns about the consequences of the trade war. Despite surpassing $3500 per ounce, gold prices were unable to maintain this level and corrected.
The recent tariff decision could have broader implications for the gold market. The tariff move, unprecedented for gold, could signal broader protectionist trends that may affect gold’s role as a monetary asset and the stability of bullion markets globally. It could also lead to shifts in global gold supply chains, sustained volatility, and altered market leadership.
In summary, Trump's decision not to impose tariffs on imported gold has brought relief to the global market and the U.S.-Switzerland trade. The decision maintains the standard of one-kilogram bars on Comex in New York, ensures the smooth flow of gold supplies from Switzerland to the U.S. market, and avoids market disruptions. However, the broader implications of this decision remain to be seen.
[1] Bloomberg, "Gold Futures Soar to Record High as Trump Tariff Threatens Market", 8 August 2025. [2] Financial Times, "U.S. Clarifies Gold Tariff Exemption for Smaller Bars", 10 August 2025.
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