President Donald Trump said Monday that gold will be excluded from tariffs, reversing a U.S. Customs and Border Protection ruling that would have subjected bars from Switzerland to a 39% duty.
"Gold will not be Tariffed!," Mr. Trump wrote on Truth Social. The announcement sent gold futures down 2.48% to $3,404.70 per ounce, after the metal had hit a record high on Friday following the customs decision.
The initial ruling applied to 1-kilogram and 100-ounce gold bars from Switzerland but would have extended to any country exporting bullion to the U.S., according to the Swiss Precious Metal Association. The group warned last week that the decision "may negatively impact the international flow of physical gold."
Switzerland, one of the world's largest gold refiners, exported more than $50 billion worth of gold in the 12 months ending in June. Gold shipments to the U.S. had spiked earlier this year as traders sought to frontload imports ahead of potential levies, HSBC data show.
Mr. Trump's reciprocal tariffs against dozens of trading partners took effect Aug. 7. Monday's reversal follows market volatility triggered by the uncertainty. "This action further bolsters our bullish outlook for gold prices, with these tariffs set to disrupt the flow of gold globally and push both the US and global price higher," Trevor Yates, senior investment analyst at Global X, wrote before the exemption was announced.
Bob Iaccino, chief market strategist at Path Trading Partners, said gold demand remains supported by multiple factors, including central bank buying and expectations of U.S. interest-rate cuts. "Volatility amid tariff uncertainty would be good for gold, since it is still considered a safe haven asset," he said.
According to the World Gold Council, gold exchange-traded fund inflows hit 170 metric tons in the second quarter of 2025, valued at nearly $400 billion - the strongest first-half performance since 2020. Retail investment climbed 11% year-over-year, led by demand in China. Central banks added 166 metric tons in the quarter, with 95% of reserve managers expecting purchases to continue.
Still, investors remain cautious about reciprocal tariffs on other gold-exporting countries. The only nations supplying more gold to the U.S. than Switzerland are Canada and Mexico. Refinery managers told Bloomberg they are pausing shipments until tariff policy becomes clearer.
