The US government stirred up quite a bit of chaos in the global gold market recently by suggesting that some gold bars, like the one-kilogram and 100-ounce bullion bars, might face hefty import tariffs depending on where they come from.
That announcement threw a wrench into things, sending gold prices shooting up to record levels.
But then the White House stepped in, saying they plan to clear things up soon and probably exempt those gold bars from the tariffs through an executive order, trying to calm the market and bring some stability back.
What triggered tariff confusion on gold bars?
The whole mess kicked off when US Customs and Border Protection (CBP) put out a ruling saying that one-kilogram and 100-ounce cast gold bars, the sizes most traded on the big futures exchange Comex, fell under a customs code that wasn’t on a list of tariff exemptions.
That meant these bars, mostly coming from Switzerland (the world’s biggest gold refinery), could get slapped with a 39% tariff, part of the Trump-era trade policies aimed at Swiss exports.
This caught a lot of traders and refiners off guard and shook up the usual gold supply chains. Swiss refineries hit pause on sending these bars to the US while they figured out what the tariff costs might mean.
To put it in perspective, last year the US imported about $61.5 billion worth of Swiss gold, so the tariffs could have added roughly $24 billion in extra import costs.
That fear sent gold futures prices in the US soaring past $3,490 an ounce, an all-time high, as the market reacted to supply worries and potential arbitrage chances.
The Swiss Precious Metals Association didn’t hold back either, warning that these tariffs would basically “stop” gold exports to the US, which would mess up the global market big time.
They also pointed out that the tariffs could create a price gap between the US Comex market and London’s Bullion Market Association prices, throwing off the whole sector.
Other major gold players like the UK, South Africa, and Canada are watching closely, worried about what kind of ripple effects this could cause.
White House steps in
With all the market chaos and wild price swings, the White House jumped in to clear things up. Officials said they’re planning to roll out an executive order to set the record straight on those gold bar tariffs and similar specialty products.
The goal is to officially keep one-kilogram and 100-ounce gold bars tariff-free, just like they’ve been for years.
After that announcement, gold futures cooled off a bit, settling back around $3,450 an ounce.
Folks in the market breathed a sigh of relief because the earlier confusion had really rattled investors and everyone involved in trading and moving gold bars around the world.
This executive order should finally put an end to the uncertainty that had refiners, banks, and traders on edge and prevent more disruptions that could spill over beyond the US.
It’s also a big deal for investors in places like India, where gold prices jumped sharply during the chaos.
Indian markets saw prices hit around ₹100,942 per 10 grams for 24-karat gold, fuelled by safe-haven buying and worries over tariffs messing with global supply.
The post Decoding US gold bar tariff twist: how customs ruling jolted global bullion markets appeared first on Invezz