White House labels a peculiar tariff decision as misinformation, causing a tumultuous movement in gold prices
The United States has confirmed that it does not impose tariffs on gold imports, following a clear exemption announced by President Trump in August 2025. This exemption removes gold from the tariff policies that were causing confusion, particularly on standard gold bullion bars like 1 kg and 100 oz sizes.
The current status of gold imports in the U.S. ensures market stability by providing predictable pricing and uninterrupted trade flows. This is crucial as the U.S. is a major gold market globally. The exemption also benefits gold mining companies and refiners by maintaining established refining and distribution channels without added trade costs.
However, other precious metals like silver, platinum, and palladium may still be vulnerable to tariffs, creating some segmentation in precious metals markets. If the exemption were reversed, significant market volatility and trading disruptions could occur. Yet, gold’s global nature means supply chains would adapt rather than a market collapse.
The exemption likely sustains the global gold market's smooth functioning and confidence, avoiding tariff-induced price shocks or trade barriers in the U.S. It also reduces uncertainties that might have arisen from initial US customs suggestions about duty impositions on certain gold bars.
Recently, the Swiss Association of Manufacturers and Traders of Precious Metals expressed concern about the implications of tariffs for the gold industry and the physical exchange of gold with the U.S. Ole Hansen, head of commodity strategy at Saxo Bank, believes a tariff on gold could distort the market and make the New York exchanges less appealing for the global market.
Rob Haworth, senior investment strategy director at US Bank's Asset Management Group, questions whether the tariff on gold was intended as initially stated. Joni Teves, a strategist at UBS, expects the gold market and precious metals markets more generally to remain very nervous until there is clarity on the tariff issue.
The tariff on gold could have significant implications for the global supply chain, including the gold industry and the physical exchange of gold with the U.S. The New York market could lose its appeal for global investors if they have to reckon with the cost of tariffs. Gold bullion is used to back the financial contracts traded on the Comex exchange, a hub for trading based in New York, and these gold bars are widely imported from Switzerland. The tariff adds costs to the process of settling futures contracts on US commodities exchange Comex.
The rise in New York gold prices held around 1% before retreating, which could be a signal that some traders expected the tariff ruling could be revised. The tariff on gold imports could potentially disrupt the current organization of the global gold trade. The White House has stated that it will issue an executive order to clarify the issue regarding tariffs on gold bars.
Investors have sought places to park their cash amid trade and geopolitical turmoil, and gold, a safe haven during uncertainty, has soared 31% this year. The tariff on gold could increase the cost of importing the metal into the United States, particularly since the bulk of refining capacity sits in Switzerland, which faces 39% US tariffs.
The tariff campaign by President Donald Trump has included a 39% tariff on imports from Switzerland, among the highest rates implemented. The Swiss Association of Manufacturers and Traders of Precious Metals has expressed concern about the implications of the tariffs for the gold industry and the physical exchange of gold with the U.S. The situation remains fluid, and clarity on the tariff issue is eagerly awaited by the global gold market.
[1] Gold Trade and Tariffs: What You Need to Know [2] Gold Tariffs: What They Mean for the Global Gold Market
- The United States' decision to exempt gold imports from tariffs has been beneficial to the gold mining companies and refiners, maintaining established refining and distribution channels without added trade costs, while the situation in other precious metals markets, such as silver, platinum, and palladium, remains vulnerable to tariffs.
- The tariff on gold could have significant implications for the global gold market, potentially disrupting the current organization of the global gold trade, particularly since the bulk of refining capacity sits in Switzerland, which faces 39% US tariffs if the exemption were reversed.
