The price of gold futures have soared to a record high after it emerged that the US would put tariffs on imports of 1kg bars in a further trade blow to Switzerland, which dominates the world’s refining industry.
Swiss exports to the US were hit by a crippling 39% tariff on Thursday after the country’s president returned empty-handed from a last-minute dash to Washington in an attempt to get the rate, among the highest imposed by Donald Trump, lowered.
It later emerged that US customs had decided that certain imports of gold bars that had been in a tariff-exempt category should also be covered by the 39% rate.
The detail was revealed in a ruling letter – used by the US to clarify its trade policy – signed on 31 July and sent in response to a law firm’s request for clarification on the classification of gold for a New York precious metals trader and financier.
US Customs and Border Protection wrote back that 1kg and 100-ounce cast bars were not exempt from tariffs, adding: “Both types of bars are used primarily to back contracts on the Commodity Exchange (Comex), but are also sold to jewelers or industrial consumers for manufacturing purposes.”
Sales of gold from Switzerland to the US shot up in the first quarter of 2025 as investors sought refuge in a safe investment amid the uncertainty caused by Trump’s threat of tariffs.
The Swiss precious metals association suggested this trend may have contributed to Trump’s decision to slap a blanket 39% tariff on imports from Switzerland.
The association acknowledged “the short-term impact that gold has had on the trade balance at the beginning of 2025, which was an exceptional situation created by the reaction of the US markets to uncertainty around upcoming tariffs, and the global geopolitical situation”. It said the imposition of tariffs on gold cast products “makes it economically unviable to export them to the US”.
Its president, Christoph Wild, said: “We are particularly concerned about the implications of the tariffs for the gold industry and the physical exchange of gold with the US, a longstanding and historical partner for Switzerland.”
Record bullion exports of more than $36bn (£27bn) made up more than two-thirds of Switzerland’s trade surplus with the US in the first quarter, according to Swiss customs data.
The price of US gold futures hit an all-time intraday high of $3,534 on Friday after the details of the ruling letter, first reported by the Financial Times, emerged.
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With about 70% of the world market, Switzerland dominates the trade of turning gold from mines and other sources into gold bars.
It imports about 2,000 tonnes of gold annually, much of it from intermediary banks in London, New York and elsewhere, which are later exported as gold is seen as a safe haven investment at a time of financial uncertainty.
In the 12 months to June, Swiss exports of gold to the US were worth about $61.5bn and this now faces an extra levy of 39%. Switzerland’s rate is among the highest in the world, after Brazil, Syria, Laos and Myanmar.
According to reports, gold bars were in such demand in the US in May after Trump’s announcement of sweeping “reciprocal” tariffs the previous month that Costco capped how many gold bars could be bought in a day.
