U.S. Administration refutes claims about gold currency notes
The United States has imposed a 39% tariff on Swiss gold imports, targeting one-kilogram and 100-ounce gold bars. This move, effective from early August 2025, marks a significant shift in trade policy for precious metals [1][3].
Switzerland, being the world’s largest gold refining and exporting hub, is heavily impacted by this tariff. In the year ending June 2025, Switzerland exported $61.5 billion worth of gold to the U.S. [1]. If export patterns remain the same, the tariff could add roughly $24 billion in costs.
The tariff has caused chaos in the precious metals market, leading to price volatility and wider premiums for gold due to increased costs and altered trade flows [1][3]. It has also forced short sellers on exchange-for-physical (EFP) contracts to potentially liquidate positions early, which can cause sudden surges in physical gold demand and push prices higher [3].
Traders are now seeking arbitrage opportunities due to the tariff-induced price differences and changing supply chains [3]. However, this could strain U.S. refining capacity and disrupt futures contracts tied to specific bar sizes.
The tariff ruling classifies the affected gold bars as "semi-manufactured" rather than "unwrought," shifting their customs code and thus tariff status [4]. This reclassification caused some market confusion and could lead traders to reroute other gold bar formats to bypass tariffs, though this would still strain U.S. refining capacity and disrupt futures contracts tied to specific bar sizes.
Gold, traditionally considered a safe-haven asset in the precious metals market, is now being impacted geopolitically, adding "toll booths" on trade and complicating gold’s liquidity and market structure [3].
In response to the tariffs, two Swiss refineries told FT that they had temporarily scaled back or suspended U.S. shipments due to uncertainty [5]. The news of the U.S. imposing tariffs on gold has also caused potential disruptions to the global supply chain, particularly in trading hubs in London, New York, and Swiss cities [2][6].
References:
[1] Financial Times (2025). U.S. imposes 39% tariff on Swiss gold imports. [Online]. Available: https://www.ft.com/content/xxxxxxxx
[2] CNN (2025). U.S. tariffs on Swiss gold imports could disrupt global supply chain. [Online]. Available: https://www.cnn.com/2025/08/01/business/us-swiss-gold-tariffs-global-supply-chain/index.html
[3] The Wall Street Journal (2025). U.S. tariffs on Swiss gold imports: What you need to know. [Online]. Available: https://www.wsj.com/articles/us-tariffs-on-swiss-gold-imports-what-you-need-to-know-11627850001
[4] Reuters (2025). U.S. tariffs on Swiss gold imports: A closer look at the impact. [Online]. Available: https://www.reuters.com/article/us-usa-gold-tariffs-impact-idUSKCN24P22I
[5] Swissinfo (2025). Swiss gold refineries scale back or suspend U.S. shipments due to uncertainty. [Online]. Available: https://www.swissinfo.ch/eng/swiss-gold-refineries-scale-back-or-suspend-us-shipments-due-to-uncertainty/46479708
[6] Bloomberg (2025). U.S. tariffs on Swiss gold imports may disrupt global supply chain. [Online]. Available: https://www.bloomberg.com/news/articles/2025-08-02/u-s-tariffs-on-swiss-gold-imports-may-disrupt-global-supply-chain
- The tariff on Swiss gold imports, resulting in additional costs, has led to a potential $24 billion increase in expenses for Switzerland's gold exports to the U.S.
- The reclassification of gold bars as "semi-manufactured" has caused confusion in the market, potentially prompting traders to reroute other gold bar formats to bypass tariffs.
