Gold prices reach unprecedented levels following Trump's tariffs implementation
The United States has imposed a 39% tariff on imported gold bars weighing 100 ounces (approximately 2.78 kilograms) or more, disrupting global gold markets and causing U.S. gold futures to spike to record highs. This significant tariff, which specifically targets larger gold bars, is likely to influence gold bar pricing, supply chains, and potentially encourage shifts in refining and trading routes globally.
The tariff, announced in August 2025, appears to be aimed particularly at Switzerland, the world's largest gold refining hub. By imposing these tariffs, the U.S. is likely trying to curb Switzerland’s dominant role in the gold supply chain and restrict its ability to sell refined gold competitively in the U.S. market.
Switzerland exported £45.7 billion of gold to the U.S. in the 12 months to June, with most of its bullion exports to the U.S. being one-kilo bars. The tariffs could impose an additional £18 billion in levies on Switzerland under their 39% tariff rate.
The move may also reflect broader geopolitical trade tensions between the U.S. and Switzerland, as well as an attempt by the U.S. to gain greater control over gold pricing and reduce reliance on foreign refiners.
As a result, U.S. gold futures prices have surged, hitting 3.535 per troy ounce. Shares in Fresnillo and Greatland Resources, London-listed miners, rose by 1.6% and 3.8% respectively, indicating a potential increase in demand for gold.
However, investing in gold is not a one-way bet, according to Susannah Streeter, head of money and markets at Hargreaves Lansdown. She warned investors to remain wary, as gold prices can also lose their lustre.
Bob Haberkorn, market strategist at RJO Futures, expects gold to remain elevated until more information comes forth from the Trump administration on the 39% tariffs relating to gold kilo bars. Zain Vawda, an analyst at Market Pulse, suggested that the tariff could create supply bottlenecks, potentially pushing up the price of spot gold.
It is unclear whether other types of gold, such as the 400 troy ounce bar used in London, will be subject to tariffs. It is also not clear if levies on gold will be imposed on exports from all countries.
In summary, the U.S. gold tariffs are reshaping both U.S. gold import economics and global gold market dynamics, with Switzerland as a focal point of impact due to its central refining role. This development is likely to have far-reaching implications for the gold industry.
| Aspect | Details | |-----------------------------|------------------------------------------------| | Tariff Rate | 39% on imported gold bars 100+ ounces | | Affected Products | Large gold bars including 1-kilo bars | | Main Target Country | Switzerland | | Market Impact | Surge in U.S. gold futures prices, uncertainty | | Strategic Reasoning | Revenue generation, trade leverage over Switzerland, reducing foreign reliance |
- The tariff on large gold bars, affecting primarily Switzerland, has redefined the economics of U.S. gold imports and significantly altered global gold market dynamics.
- The decision of imposing a 39% tariff specifically targets larger gold bars like 1-kilo bars, which are the majority of bullion exports to the U.S. from Switzerland.
- The surge in U.S. gold futures prices to record highs and the rise in shares of London-listed gold miners indicate a potential increase in demand for gold.
- Despite the surge in gold prices, investing in gold is not a guaranteed success, as gold prices can also experience fluctuations and lose their value.
- The uncertainty surrounding the 39% tariffs on gold and the potential supply bottlenecks created could push up the price of spot gold, as suggested by Market Pulse analyst Zain Vawda.
- The imposition of tariffs could have far-reaching implications for the gold industry, with the potential to encourage shifts in refining and trading routes globally.
- It remains unclear whether other types of gold, such as the 400 troy ounce bar used in London, will be subject to tariffs, and whether levies on gold exports will be imposed on goods from all countries.
