Trump’s 39% Swiss Tariff on Gold Bars Shakes Market

Last Updated on August 12, 2025

The unexpected imposition of a tariff on gold bars imported from Switzerland under President Trump’s trade policy has sent shockwaves through the global bullion market. Initially, bullion traders believed that one kilogram and 100-ounce bars would be exempt from these duties, even under the administration’s new reciprocal tariffs—one of which is a staggering 39% country rate on Switzerland. But this turned out to be a false prediction. In this post, we’ll explore the political backdrop, the precise market effects, and what this means for investors and industry stakeholders.

Trump’s Tariff Announcement and CBP Clarification

US monthly gold imports surged to a high of 43 tons in January this year, as traders raced to ship metal to the US ahead of any possible tariffs. That compares to average monthly production by gold refiners in the US of 22 tons last year, according to US Geological Survey data.

On August 1, 2025, the Trump administration confirmed its 39% tariff on gold bars from Switzerland, covering a wide range of goods, including gold bars. This was part of a broader strategy to enforce “reciprocal” tariffs against countries the administration says engage in unfair trade practices.

Until the final days of July, bullion traders were confident that investment-grade gold bars—specifically the 1 kg and 100 oz formats—would qualify for an exemption. These bars are globally recognized as standard investment bullion and have long enjoyed tariff-free treatment in many jurisdictions.

That assumption collapsed when the CBP issued a letter on July 31, clarifying that these products fall under semi-processed goods rather than finished investment products. This subtle but critical classification change meant the bars are now fully tariff-eligible, instantly transforming trade economics for one of the most important bullion flows between Switzerland and the United States.

Market Impact – Price Spikes and Supply Chain Disruption

The CBP’s clarification had an immediate and dramatic impact on the gold market:

• Futures prices surged as traders rushed to buy untariffed bars already in U.S. bonded warehouses.
• Swiss refiners accelerated shipments in the final hours before the tariff took effect, leading to a short-term export spike.
• U.S. bullion dealers began repricing inventory, factoring in the higher import cost.

Historically, Switzerland refines around two-thirds of the world’s gold, making it a critical hub for global supply. With the tariff now inflating costs on standard gold bars, market analysts expect:

• Increased demand for domestically refined bullion in the U.S.
• Higher spreads for physical gold transactions.
• Potential arbitrage opportunities for traders sourcing gold from tariff-free countries.

We think that this sort of unpredicted market intervention can’t solve immediately all of mister Trump’s agenda points and it will create major issues for consumers as well as artificially high gold prices.

Why the Classification Matters

The heart of the dispute lies in customs codes. Investment-grade bullion often falls under categories that exempt it from tariffs, but the CBP’s ruling places these Swiss bars in the semi-manufactured category. This means they are treated more like industrial feedstock than finished investment products.

This decision aligns with the administration’s stated goal of protecting domestic refining industries, but it also risks driving trade toward other refining hubs—such as Singapore, Hong Kong, or Dubai—where the U.S. does not impose similar levies. We think that It is also questionable if the US can bring back that kind of business in America without causing major disruptions in the short and mid term and with low unemployment rates as they are at the moment. Somebody will need to work in those refineries as well as in all of the other businesses that Trump wants back on US soil.

Implications for Investors and Traders

For retail gold investors, the direct impact will be in the form of higher premiums on physical gold sourced from Switzerland. Institutional traders may adjust strategies by:

• Sourcing from tariff-free jurisdictions.
• Utilizing paper gold instruments such as ETFs to avoid physical import costs.
• Entering into hedging contracts to offset potential price swings.

In the short term, U.S. markets could see tight supply conditions for investment-grade bars, particularly if domestic refiners cannot meet demand quickly. According to us however this is a temporary situation. Trump’s actions are known to be threats rather than a sure thing and everything might change at any minute.

Final thoughts

The July 31 CBP clarification on gold bar tariffs illustrates how a seemingly small classification change can have massive consequences for global markets. By removing the anticipated exemption for 1 kg and 100 oz Swiss gold bars, the U.S. has triggered price spikes, trade re-routing, and supply chain uncertainty. For investors, the move underscores the importance of staying ahead of policy shifts that can alter the cost structure of physical assets overnight.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.