Had the decision been maintained, it would have had devastating consequences for gold worldwide and potentially for the proper functioning of U.S. futures contracts.
President Donald Trump said on Monday that gold imports would not face U.S. tariffs, after a federal ruling caused chaos and confusion in global bullion markets.
“Gold will not have tariffs!” Trump posted on social media.
Gold futures traded on the New York Comex and the global benchmark for spot prices in London remained virtually unchanged following Trump’s statement. Spot gold reduced some losses, though it still fell by more than 1.2% on the day.
By Monday afternoon, U.S. agencies had not released any formal and updated policy.
A White House official suggested last week that the administration would issue a new policy to clarify whether gold bars would face import taxes, after the U.S. Customs and Border Protection Office surprised traders by deciding that imports would be subject to tariffs.
The ruling determined that one-kilogram and 100-ounce gold bars would be subject to Trump’s national tariffs, which came into effect on August 7. The measure was taken through a letter sent to a Swiss refinery inquiring about the treatment of gold, which was later published on the agency’s website.
Had the decision remained, it would have had devastating consequences for gold worldwide and potentially for the proper functioning of U.S. futures contracts. Gold’s role as a financial asset and global currency distinguishes it from other commodities, such as copper, which have been affected by tariffs.
Traders, analysts, and executives across the industry had understood that gold bars would be exempt from Trump’s so-called “reciprocal” tariffs, including a 39% tax on products from Switzerland, a major exporter.
The confusion surrounding the CBP letter caused U.S. gold futures to surge to a record high on Friday, with traders reporting that shipments were being frozen in response to the shocking news.
Bullion markets stabilized later on Friday when a White House official told Bloomberg in a written statement that the Trump administration intended to issue an executive order in the near future to clarify what it called misinformation regarding the imposition of tariffs on gold and other special products.
The latest statement adds to a tumultuous year for gold, which has soared to unprecedented levels amid strong central bank buying and as Trump’s trade war has driven demand for safe-haven assets.
Earlier this year, physical flows were disrupted when traders brought billions of dollars of gold and silver into the U.S., while New York prices were traded with significant premiums in anticipation of potential tariffs. However, this trade came to an abrupt halt after the U.S. included gold and silver on its list of tariff exemptions announced in early April.
Bloomberg