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Tariffs

Trump Announces No Tariffs on Gold, Prices Plummet

Strategic Insights

— 1 min read

President Donald Trump made a surprising announcement on Truth Social, stating that gold will not be subject to tariffs, causing gold futures to plummet by 2.48% to $3,404.70 per ounce. The decision effectively reverses a previous ruling by the U.S. Customs and Border Protection that would have imposed a 39% tariff on gold bars from Switzerland, used to back contracts on the COMEX futures market.

Key Takeaways:

  • President Trump issued a statement on Truth Social announcing that gold will not be tariffed, effective immediately.
  • The decision comes after a previous ruling by the U.S. Customs and Border Protection that would have imposed a 39% tariff on gold bars from Switzerland.
  • The gold bars in question are used to back contracts on the COMEX futures market, which is the main market for gold, silver, and other metals.
  • The Swiss Precious Metal Association warned that the original ruling could have "negatively impacted the international flow of physical gold" and made it "economically unviable" to export gold to the U.S.
  • The association stated that the tariff would have eliminated any future trade deficit arising from gold exports.
  • Gold futures closed 2.48% lower at $3,404.70 per ounce after the announcement, with CNBC reporting on the price drop.
  • The decision marks a significant shift in U.S. trade policy towards gold, reversing a previous move that would have imposed significant tariffs on the precious metal.

Statistics:

  • Gold futures closed 2.48% lower at $3,404.70 per ounce after the announcement.
  • The previous ruling by the U.S. Customs and Border Protection would have imposed a 39% tariff on gold bars from Switzerland.
  • The Swiss Precious Metal Association warned that the original ruling could have had a significant impact on the international gold trade, making it economically unviable to export gold to the U.S.

Sources:

  • UPI, "Trump says no tariffs on gold," August 11.
  • CNBC, "Gold price falls 2.48% as Trump cancels 39% tariff," August 11.
  • Swiss Precious Metal Association, "Statement on the imposition of tariffs on gold cast products," August 5.

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