39% Reciprocal Tariff Imposed on Swiss Gold Bars
Swiss Economy and Global Gold Market Expected to Face Major Impact
The United States has decided to impose a high tariff rate of 39% on gold bars originating from Switzerland. This is expected to deal a significant blow to the Swiss economy and cause turmoil in the global gold spot market.
On August 8 (local time), the Financial Times (FT) reported that in a customs ruling dated July 31, the U.S. Customs and Border Protection (CBP) stated that 1 kg and 100-ounce (approximately 3.1 kg) gold bars fall under tariff-imposed product codes.
This CBP decision directly contradicts industry expectations that gold bars would fall under a different classification code, which would have exempted them from President Donald Trump’s tariff policy. The document obtained by FT is an official record used by the U.S. government to clarify its trade policy. It was issued in response to an official inquiry from a Swiss refinery and specifies that these gold bars are not included in the tariff-exempt codes.
The 1 kg gold bar is the standard form traded on the New York Mercantile Exchange (COMEX), the world’s largest gold futures market, and accounts for most of the gold Switzerland exports to the United States. Over the year up to June, Switzerland exported $61.5 billion (approximately 85.2083 trillion won) worth of gold to the U.S. If the 39% reciprocal tariff rate applied to Switzerland is levied on the same volume, an additional $24 billion in tariffs could be imposed.
Global gold trading involves gold being refined in Switzerland and then traded in London and New York. Earlier this year, after President Trump announced reciprocal tariffs, traders rushed to import gold into the U.S., resulting in record-high inventories in New York and a temporary gold shortage in London. However, the list of tariffed items announced at that time included certain exemptions, and the industry understood that gold bars were among those exempted.
Due to concerns over inflation, a surge in national debt, and a weak dollar, gold prices have soared to record highs this year, rising by 27% compared to the end of 2024.
Several Swiss refineries have spent months consulting with lawyers to determine which gold products are exempt from tariffs. According to the FT, two of these companies have now either temporarily suspended or reduced gold exports to the U.S. due to ongoing uncertainty.
Christoph Wild, chairman of the Swiss Precious Metals Manufacturers and Traders Association, said this measure is "another blow to Switzerland’s gold exports to the U.S." and added, "This tariff will make it more difficult to meet gold demand within the United States."
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