The price of gold has fallen after US President Donald Trump clarified that gold bars would not be subject to tariffs, ending days of uncertainty that had rattled global bullion markets.
In a post on his Truth Social platform on Monday, Trump wrote: “Gold will not be tariffed.” The statement came after reports that the US planned to impose tariffs on imports of 1kg bars, which had driven gold futures to a record high on Friday.
The exemption is a relief for Switzerland, the dominant player in the bullion market. Swiss customs data show that $36bn (£27bn) of gold exports to the US in the first quarter accounted for more than two-thirds of the country’s trade surplus with America. Switzerland had faced a blanket 39% tariff on all imports, including gold, luxury watches, chocolate and cheese.
Following Trump’s announcement, US gold futures dropped 2.4% to $3,407 per ounce, while spot gold fell 1.2% to $3,357. On Tuesday, prices edged up slightly after US inflation data came in at 2.7%, unchanged from the previous month and slightly below economists' expectations.
The Swiss Association of Precious Metals Producers and Traders (ASFCMP) welcomed the statement but called for a formal decision. President Christoph Wild said: “President Trump’s statement is an encouraging signal for trade stability. However, only a formal and binding decision will provide the certainty the gold sector and its partners require.”
Ross Norman, chief executive of Metals Daily in London, said the clarification had averted a crisis. “It will come as an enormous relief to the bullion markets, as the potential for disruption was incalculable,” he said. The confusion had led to physical gold being held back in bonded warehouses while traders sought urgent clarification from the White House.
