The price of gold eased on Monday after US President Donald Trump clarified on social media that gold bars would not be subject to tariffs. His statement on Truth Social, which read “Gold will not be tariffed”, ended days of uncertainty that had rattled global bullion markets.
Last week, gold futures surged to a record high following reports that the US would impose tariffs on imports of 1kg bars. The move threatened to disrupt trade, particularly for Switzerland, which dominates the bullion market. Swiss customs data showed that $36bn (£27bn) of gold exports made up more than two-thirds of the country’s trade surplus with the US in the first quarter.
Switzerland had been hit with a blanket 39% tariff on all imports, including gold, luxury watches, chocolate and cheese. However, Trump’s statement allayed concerns, causing US gold futures to drop 2.4% to $3,407 per ounce, while spot gold fell 1.2% to $3,357.
The Swiss Association of Precious Metals Producers and Traders (ASFCMP) welcomed the announcement but called for a formal decision. “President Trump’s statement is an encouraging signal for trade stability,” said Christoph Wild, the association’s president. “However, only a formal and binding decision will provide the certainty the gold sector and its partners require.”
A White House official told Reuters that the administration was preparing an executive order to clarify “misinformation” about tariffs on gold bars and other products. The confusion arose after US Customs and Border Protection stated that 1kg and 100-ounce cast bars were not exempt from tariffs, prompting a letter from a law firm representing a metals financier.
Ross Norman, chief executive of Metals Daily in London, described the clarification as a relief. “I am delighted to hear the crisis has been averted,” he said. “It will come as an enormous relief to the bullion markets, as the potential for disruption was incalculable.” He noted that most physical gold destined for New York had been held in bonded warehouses pending clarification.
