New US tariffs on kilo gold bars threaten global bullion trade: Report

Gold prices have rallied sharply this year, rising 27% since late 2024 and briefly topping $3,500 per troy ounce, driven by inflation fears, concerns over government debt, and the weakening of the US dollar as a reserve currency

The United States has moved to impose tariffs on imports of one-kilo gold bars, a step that the Financial Times says could jolt the global bullion market and deepen the impact on Switzerland, which is global hub for gold refining.

The decision, revealed in a July 31 US Customs and Border Protection ruling letter seen by the Financial Times, reclassifies the most commonly traded gold bars in the American market under a tariff-liable customs code.

As per FT report, in a ruling letter dated July 31, the US Customs and Border Protection (CBP) said one-kilo and 100-ounce gold bars should be classified under a customs code subject to tariffs. Such ruling letters are used by Washington to clarify its trade policy.

The CBP’s stance runs counter to earlier industry expectations that these bars would be classified under a different code exempt from tariffs imposed under President Donald Trump’s trade measures. One-kilo bars are the standard form traded on Comex, the world’s largest gold futures market, and make up the bulk of Switzerland’s bullion exports to the US.

The move comes amid deteriorating relations between Washington and Bern, after the US last week announced a 39% tariff on imports from Switzerland. Gold is among Switzerland’s top exports to the US, customs data shows. Swiss Association of Manufacturers and Traders of Precious Metals President Christoph Wild told FT that the latest ruling delivered “another blow” to Swiss gold trade with the US.

Earlier this year, traders rushed to ship gold into the US ahead of Trump’s “liberation day” tariffs, leading to record stockpiles on Comex and a temporary shortage in London. At the time, certain bullion classifications were exempt from duties — widely interpreted to include large gold bars.

The Financial Times notes that the global bullion trade typically follows a triangular route: large gold bars move between London and New York via Switzerland, where they are recast into different sizes. London uses 400-troy-ounce bars, about the size of a brick, while New York prefers the kilo bar, roughly the size of a smartphone.

Gold prices have rallied sharply this year, rising 27% since late 2024 and briefly topping $3,500 per troy ounce, driven by inflation fears, concerns over government debt, and the weakening of the US dollar as a reserve currency. Switzerland exported $61.5 billion worth of gold to the US in the 12 months to June. At the new 39% tariff rate, that volume would face an additional $24 billion in duties.

The ruling letter — issued in response to a formal clarification request from a Swiss refinery — concluded that one-kilo and 100-ounce bars fall under classification code 7108.13.5500, and not under 7108.12.10, the only category exempt from US tariffs.