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.