Trump Says Gold Will Not Be Tariffed

On Monday, President Donald Trump used a Truth Social post to announce that gold would not be subject to tariffs, effectively nullifying a recent decision by U.S. Customs and Border Protection. The customs ruling had stated that 1-kilogram and 100-ounce gold cast bars imported from Switzerland would face Trump’s 39% tariffs. These types of gold bars are commonly used to back contracts on The Commodity Exchange (COMEX).

The initial ruling not only targeted Switzerland but also any country exporting similar gold bars to the U.S., subjecting them to the prevailing U.S. tariff rate. The Swiss Precious Metal Association had cautioned that this ruling could disrupt the international flow of physical gold. Trump’s reversal led to an immediate market reaction, with gold futures closing down 2.48% at $3,404.70 per ounce. Previously, the U.S. Customs ruling had driven gold to a record high on Friday.

This situation highlights the sensitivity of commodity markets to policy changes and the significant impact of tariffs on international trade. Investors and traders should closely monitor policy decisions to anticipate market movements.

Gold prices initially rose due to a U.S. Customs and Border Protection ruling that gold bars from Switzerland would be subject to tariffs.

Following Trump's announcement that gold would not be tariffed, gold futures closed 2.48% lower at $3,404.70 per ounce.

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