TMTPOST -- U.S. President Donald Trump on Monday clarified gold imports from other countries will not be tariffied after a report last week aroused concerns over the meta levies.
Credit：China Central Television
「Gold will not be Tariffed!」 Trump said in a post on his social media platform Truth Social. U.S. gold futures for December delivery settled around 2.5% lower to $3404.7 per ounce following Trump』s post. The benchmark Comex contract logged its largest daily percentage decline since May 12.
The precious metal last Friday, a trading session earlier, once topped $3534.00,hit its record high at midday over a Financial Times (FT) report about gold tariffs shocked traders who had assumed gold bars met the definition of 「bullion」 would still be exempted despite new tariffs on Switzerland.
Trump on July 31 signed an executive order to modify reciprocal tariffs on dozens of countries, with the tariff rates ranging from 10% to 41%. Switzerland is one of losers as Trump lifted the 31% reciprocal tariff rate on the country to 39%, effective on Thursday.
The FT report implies that gold imported from refiners in Switzerland is subject to a 39% import tariff, citing one of ruling letters that are used by the U.S. government to clarify its trade policy.
A Swiss refiner asked the U.S. Customs Border Protection (CBP) agency whether the cast bar they produce, and potentially export to the US, falls under HS code 7108.12.10, and are therefore exempt under Annex 2 of the Liberation Day Executive Order.
The agency said one-kilo and 100-ounce gold bars should be classified under a customs code 7108.13.5500, and are therefore subject to tariffs, because they are 「stamped」, meaning they are not unwrought, according to a so-called ruling letter dated July 31, which was seen by the FT.
As the world』s top gold refining hub, Switzerland refines 90% of gold sourced from industrial mines. Gold is set to become significantly more expensive in the U.S. than in the international market if the reciprocal tariffs apply to gold bars.
「The imposition of tariffs on these gold cast products makes it economically unviable to export them to the U.S., thereby eliminating any future trade deficit arising from gold exports,」 said the Swiss Association of Manufacturers and Traders of Precious Metals in a statement. The association said it remains committed to a 「constructive」 dialogue with U.S. authorities and international partners.
Switzerland』s State Secretariat for Economic Affairs declined to comment on the reported gold tariffs, and said discussions with the U.S. are underway and have been focused on reducing tariffs.
The Trump administration suggested it would issue a new policy clarifying that imports of gold bars should not face tariffs, Bloomberg reported later Friday. 「The White House intends to issue an executive order in the near future clarifying misinformation about the tariffing of gold bars and other speciality products,」 the report cited a White House official. Gold futures briefly pared gains after the report, but was immediately bid back up.
The report highlight how Trump』s worldwide tariff war is intensifying the market volatility for precious metals. Earlier this year, the physical flows were upended as traders rushed billions of dollars worth of gold and silver into the U.S. as New York prices traded at large premiums in anticipation of potential tariffs. However, that trade came to a crashing halt after Washington included gold and silver in its list of exemptions from the tariffs announced in early April.
