Trump overrules US Customs, decides gold will not face tariffs
As President Donald Trump levies tariffs of varying rates against American trading partners, one particular good appears to go unscathed. The president said Monday that gold will not face tariffs.
The move comes just days after U.S. Customs and Border Patrol (CBP) indicated that gold bars — coming into the U.S. from Switzerland — would face levies.
What Trump said specifically about gold
Trump posted two tariff-related messages on Truth Social early Monday. The first said, “Tariffs are making our Country Strong and rich. ” A few hours later, he posted, “Gold will not be Tariffed.”
Gold price per ounce
According to the precious metals online retailer JM Bullion, gold started at $3,353 per ounce on Tuesday and was trading at approximately $3,370 per ounce. CNBC reported that CBP had ruled that 100-ounce gold cast bars were subject to the Trump reciprocal tariffs that went into effect on Aug. 7.
Tariffs targeting Switzerland
The new tariff rate on products coming into the U.S. from Switzerland is currently at 39%. The Commodity Exchange, the primary futures market for gold, silver and other precious metals, uses gold bars to back contracts.
Reaction to the tariffs
The Swiss Precious Metals Association said Friday the customs ruling “may negatively impact the international flow of physical gold.“ Its president added, “We are particularly concerned about the implications of the tariffs for the gold industry and the physical exchange of gold with the U.S., a long-standing and historical partner for Switzerland.“
Gold is often viewed as a reliable source of value and form of currency when traditional markets appear unstable or shaky. Gold prices traditionally rise during times of high inflation and can help investors reduce risk during market downturns. It’s highly liquid and frequently sold worldwide.
Potential major economic development Tuesday
A critical economic report that came out Tuesday could affect the market. It revealed that inflation was slightly lower in the U.S. in July than analysts expected. The producer price index increased at an annual rate of 2.7%, compared to the expected 2.8 %.
Ella Rae Greene, Editor In Chief
