Gold Market Jolted by Tariff Confusion as White House Vows Clarification

The global gold market was rattled this week after a U.S. Customs and Border Protection letter indicated that imports of gold bars would not be exempt from tariffs — a revelation that caught traders by surprise and sent prices on a rollercoaster.

According to the July 31 CBP letter, one-kilo and 100-ounce gold bars imported from Switzerland are subject to reciprocal tariffs. This contradicted expectations that bullion would avoid such duties, sparking immediate concern over supply chain disruptions between key trading hubs in London, New York, and Switzerland.

The White House moved quickly to tamp down speculation, calling the tariff news “misinformation” and promising to issue an executive order to clarify the situation.

President Donald Trump’s tariff policy includes a 39% levy on imports from Switzerland — among the highest imposed — which took effect Thursday. While gold surged more than 1% to a record above $3,500 a troy ounce late Thursday, prices later retreated to about $3,460 as traders awaited further guidance.

Market strategists warned that a tariff could increase costs for U.S. gold imports, complicating settlement of futures contracts on New York’s Comex exchange, where much of the refined gold originates from Switzerland. “These costs would be quite high,” noted Joni Teves, strategist at UBS.

Industry leaders, including the Swiss Association of Manufacturers and Traders of Precious Metals, voiced concern that tariffs could disrupt long-standing trade ties and diminish the appeal of New York’s gold market.

While prices in New York climbed, London gold prices remained steady, highlighting a growing premium for U.S.-traded bullion. Analysts say the uncertainty will likely keep precious metals markets volatile until the White House issues its promised clarification.

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