The global gold market has been thrown into turmoil after the US government revealed that bullion imports would be subject to reciprocal tariffs. The Customs and Border Protection agency confirmed on July 31 that one kilo and 100-ounce gold bars are subject to tariffs, causing Wall Street traders to reassess their expectations.
A tariff on gold would hike import costs, affecting a global supply chain involving hubs in London, New York, and Switzerland. The White House has called the decision “misinformation,” promising an executive order to clarify the issue.
The news has sent gold prices into a tailspin, with futures contracts surging over 1% before paring gains. Analysts warn that a fresh tariff would strain supply chains, making it harder for investors to hedge positions and potentially disrupting the global market.
“Gold traders will be grappling with the implications of previously unanticipated tariffs,” said Ulrike Hoffmann-Burchardi, head of global equities at UBS. The rise in New York gold prices was seen as a signal that some traders expected the tariff ruling could be revised.
A tariff on gold imports would have significant implications for the global supply chain, affecting not just bullion used to back financial contracts but also physical bars sold at Costco and other industries. Industry groups are warning of the potential disruption to trade relations with Switzerland, a long-standing partner in the exchange of gold.
Source: https://edition.cnn.com/2025/08/08/business/us-gold-market-switzerland-tariff-trump