Gold will reportedly avoid Trump's planned tariffs, according to the former president.
In a recent development, US President Donald Trump announced that gold will not be subjected to tariffs, following concerns from the Swiss Precious Metals Association about the potential harm the tariffs could cause to the gold industry.
The tariffs on gold were initially imposed in the US-Switzerland trade dispute, with the US administration viewing Swiss gold exports, particularly one-kilogram gold bars, as a significant contributor to the large US trade deficit with Switzerland. The US Customs and Border Protection ruled that these gold bars would be subjected to a 39% import duty, a move that disrupted the previous assumption that precious metals would remain tariff-exempt.
The tariffs were seen as part of broader punitive measures under the Trump administration’s trade policy, aiming to correct significant trade imbalances. Swiss gold exports were considered an important factor in Switzerland's $60 billion goods surplus with the US in 2024.
Switzerland had been engaged in ongoing negotiations with the US government, seeking to reduce or remove these tariffs. However, as of early August, the tariffs remained in place, causing industry concern.
The initial exemption of gold was due to its status as a monetary asset, thought to be exempt under US trade rules. But, the US Customs reclassification removed that exemption for certain gold products, causing operational impacts for Swiss refiners and exporters.
The announcement of gold's exemption from tariffs came after Mr. Trump's mention on the Truth Social media platform. The news sent US gold futures trading lower at $3,408.80 an ounce.
The Swiss Precious Metals Association, led by Christoph Wild, had expressed concerns about the potential harm the gold tariffs could cause to the gold industry and the physical exchange of gold with the US. Mark Bristow, the CEO of Barrick Mining, had previously stated that the impact of the gold tariff on miners would have been minimal.
The tariff sledgehammer approach with India might have an opposite effect due to the impact on gold prices and exports. The price of gold has increased more than 27% this year due to investors flocking to it amid Trump’s on-again, off-again tariff agenda. Gold prices hit a record high last week due to the uncertainty surrounding tariffs on gold.
The trade truce, initially agreed to by both countries in May and which lowered the escalatory tariffs on each other's goods, was set to expire on Tuesday. However, Mr. Trump signed an order extending the truce by another 90 days. He also mentioned that the relationship with President Xi Jinping of China is very good.
An official from the White House stated that an order will be issued in the near future to exempt gold bars from tariffs. This move is expected to ease the concerns of the Swiss Precious Metals Association and the gold industry as a whole.
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