The United States government has recently imposed tariffs on the import of one-kilogram gold bars, a move expected to significantly disrupt the global gold market. According to a report from the UK media, this new duty could particularly impact Switzerland, the world’s largest gold bar refining hub and major exporter to the US.
A document dated 31 July from the US Customs and Border Protection (CBP) clarified that both one-kilogram and 100-ounce gold bars will now be subjected to tariff codes requiring customs duties. Although the exact rates were not specified in the document, the reciprocal tariff rate Washington applies on Swiss products currently stands at 39%.
One-kilogram gold bars are among the most traded commodities on Comex, the world’s largest gold futures market, and represent a major portion of Swiss exports to the United States.
Swiss Gold Exports Face Major Cost Hike
Customs data reveals that gold ranks among Switzerland’s top exports to the US. The president of the Swiss Precious Metals Manufacturers and Traders Association, Wild, explained that this tariff ruling threatens the trade between Switzerland and America.
Earlier this year, traders rushed to purchase gold in advance of Washington’s tariff announcement, driving Comex gold inventories to record highs while causing a temporary shortage of gold in London. Despite some exemptions listed in the tariff schedule, these did not cover larger gold bars, which are now fully impacted.
The price of gold has surged dramatically in recent months, rising 27% since late 2024 and reaching a peak of US$3,500 per ounce. This rally is fuelled by inflation concerns, worries about government debt, and the declining status of the US dollar as a reserve currency.
Impact of Tariffs on Trade Value and Global Prices
In the 12 months up to June, Swiss gold exports to the US totalled US$61.5 billion. Applying the new 39% tariff would impose an additional US$24 billion in duties on exports of similar volume.
Wild noted that while precious metals re-melted by Swiss refineries have historically been exempt from tariffs, inconsistencies in customs classification codes for different gold products have caused confusion and disputes.
This tariff imposition is expected to reshape trade flows and pricing across the global gold market, potentially increasing costs for consumers and investors alike. Traders and analysts worldwide will closely monitor developments as geopolitical tensions and economic policies continue to influence gold’s safe-haven appeal.