U.S. Tariffs Push Gold to Record High Amid Trade Turbulence

Gold prices retreated below $3,400 per troy ounce as the U.S. government moved to impose tariffs on gold imports, including 1-kilogram and 100-ounce gold bars, sparking turbulence in global bullion markets. The announcement, initially reported by The Financial Times based on a July 31 letter from U.S. Customs and Border Protection, indicated a reclassification of these gold bars under a tariffable code, subjecting them to additional levies [1]. The unexpected move has disrupted traditional trading flows, particularly between Switzerland and the U.S., where Switzerland—home to the largest global gold refiners—has become a primary target [1].

The market initially responded with a sharp upward spike, as Comex August delivery gold futures surged $38.80 (1.14%) to $3,439.10 per troy ounce upon the news of the tariff [1]. Gold prices had briefly touched a record high of $3,530 in mid-August before retreating, ending the week with a $91.40 (2.73%) gain, supported by the tariff announcement and expectations of U.S. Federal Reserve rate cuts following weak employment data [1].

The U.S. has already imposed a 39% tariff on Swiss gold exports, which reached $47.5 billion in the first half of 2025, up from $12 billion in the second half of 2024 [1]. The new tariff on gold bars could further complicate export operations and raise concerns over supply chain stability, particularly in a market that frequently involves large bar movements.

Industry concerns are mounting, with the Swiss Precious Metals Association expressing alarm over the implications for the gold industry and the physical exchange of gold with the U.S. Christoph Wild, the association’s president, stated that the tariff could have major repercussions for refiners, who now face uncertainty regarding shipments [1]. The Swiss refiners are also monitoring how the U.S. might enforce these new rules, particularly in relation to standard bar weights and trading logistics.

Analysts suggest that while the long-term impact of the tariffs remains uncertain due to the fluid nature of U.S. President Donald Trump’s trade policies, the immediate effect has been to push gold higher in the short term if the tariffs remain in place [1]. At the same time, concerns about stagflation in the U.S. economy and continued optimism over potential Fed rate cuts have provided further support to gold prices [1].

The U.S. tariff policy is part of a broader pattern of escalating trade measures, with the new levies raising the country’s effective tariff rate above 17%, the highest level since the Great Depression [9]. These developments are occurring amid Trump’s broader trade war rhetoric, which has introduced a high degree of uncertainty into global markets. The uncertainty has also sparked speculation about capital shifting from traditional commodities to digital assets, mirroring past market responses to similar policy shocks [1].

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[1] Gold Soars Amid Reports Of US Tariffs On Gold Imports (https://www.rttnews.com/3564229/gold-soars-amid-reports-of-us-tariffs-on-gold-imports.aspx)

[4] Gold price drops below $3400, as US puts tariffs on ... (https://www.fxstreet.com/analysis/gold-price-drops-below-3-400-as-us-puts-tariffs-on-switzerland-202508081207)

[9] Trump tariffs kick in at highest rates since the Great ... (https://www.cnn.com/business/live-news/us-tariffs-take-effect-08-07-25)