Trump Administration Undoes 39% Tariff on Swiss Gold Bars, Restoring Duty-Free Trade

The Trump administration has issued an executive order reversing the 39% tariff previously imposed on gold bars imported from Switzerland, effectively restoring their duty-free status. This move comes after a month of market uncertainty triggered by the initial tariff application. As noted by entrepreneur Ryan Petersen in a recent tweet, "Last night the Trump administration issued an executive order undoing last month’s 39% tariffs on gold bars from Switzerland. Gold will remain duty free after all."

The tariff, part of a broader 39% levy on various Swiss imports, was unexpectedly applied to 1kg and 100-ounce gold bars by the U.S. Customs and Border Protection in late July. This ruling contradicted previous market assumptions that such bullion would be exempt, leading to significant disruption and a spike in gold futures prices. Switzerland is a dominant player in the global bullion market, making the tariff a substantial blow to its trade with the United States.

Following the market turmoil, the White House indicated its intention to clarify what it termed "misinformation" regarding the tariffs on gold. The executive order, signed on Friday, formalizes the exemption for gold bullion and other materials not readily produced in the United States, particularly for countries deemed "aligned partners" in trade deals. This decision aims to stabilize the flow of essential commodities.

The announcement of the tariff reversal led to an immediate easing of gold prices, which had surged in the wake of the initial ruling. The Swiss Association of Precious Metals Producers and Traders (ASFCMP) welcomed the statement, though they emphasized the need for a formal and binding decision to ensure long-term certainty for the gold sector. Market analysts expressed significant relief, noting the potential for "incalculable" disruption had the tariffs remained.

This policy reversal highlights the dynamic nature of the Trump administration's trade strategy, which has frequently used tariffs to reorder global commerce and extract concessions from trading partners. The swift action to exempt gold underscores its unique role as a safe-haven asset and a critical component of the global financial system, with regular shipments vital for settling futures contracts.