U.S. Levies Fine on Gold Bars
In a recent turn of events, the global gold industry breathed a sigh of relief as U.S. President Donald Trump clarified that gold imports from Switzerland would not be subject to tariffs, following an initial announcement that suggested a 39% duty on gold bars.
The initial decision had raised concerns about significant impacts on the global gold industry, particularly Switzerland, a major gold refining and exporting hub. This announcement led to a temporary increase in gold prices due to fears of supply disruption and increased import costs.
However, President Trump's subsequent intervention, explicitly declaring that "gold will not be tariffed", effectively reversed concerns about tariffs on gold imports from Switzerland. The White House signaled an upcoming executive order to clarify U.S. tariff policy on gold bars and other specialty products, thus calming market fears and causing gold prices to stabilize and begin declining from their brief spike.
The impact on the global gold industry, especially Switzerland, hinged on this final stance. If tariffs had remained imposed, Switzerland's gold exports to the U.S. would have faced much higher costs, potentially disrupting trade flows, increasing global gold prices, and harming Switzerland's role as a gold refining and trading center.
With tariffs now off the table, the usual flow of gold between Switzerland and the U.S. should continue smoothly without extra costs, stabilizing markets and preserving Switzerland’s key position in the global gold supply chain.
Meanwhile, the price of gold has risen by 27 percent since late 2024, due to inflation concerns, growing U.S. national debt, and a decreasing attractiveness of the U.S. dollar as a reserve currency. In the 12 months up to June 2025, Switzerland exported approximately $61.5 billion worth of gold to the U.S.
Two Swiss refineries have already stopped or significantly reduced their deliveries to the U.S., a move that could be attributed to the initial uncertainty surrounding the proposed tariffs.
The U.S. duties on imports from Switzerland are part of the "America First" economic policy strategy of President Trump. The affected tariff code had not been clearly assigned before. The additional costs for Switzerland due to the new U.S. duty rate are estimated to be around $24 billion.
Relations between Washington and Bern have deteriorated due to the new U.S. duties on imports from Switzerland. Christoph Wild, president of the Swiss industry association for precious metal manufacturers and traders, described the situation as a "further blow" to bilateral trade relations.
The situation underscores the complex interplay between trade policies, global economics, and the gold market. As the dust settles, the global gold industry and Switzerland, in particular, can now focus on maintaining and strengthening their positions in the face of ongoing economic challenges.
- The initial proposition of tariffs on gold imports from Switzerland had the potential to significantly increase costs and disrupt trade flows within the global gold industry, particularly in finance and business segments, as exemplified by the temporary halt or reduction in deliveries from two Swiss refineries.
- With tariffs now resolved, the finance and business sectors stand to benefit from the continuation of the usual flow of gold between Switzerland and the U.S., which will help stabilize markets and preserve Switzerland’s key position in the global gold supply chain, allowing it to contend with ongoing economic challenges, such as inflation.
