US Hits Swiss Gold with Shock Tariffs, Shaking Global Market

On July 31, 2025, the US Customs and Border Protection (CBP) issued a ruling that reclassified one-kilogram and 100-ounce gold bars under customs code 7108.13.5500, subjecting them to a 39% tariff. This decision, which overturned industry expectations that these bars would remain exempt under code 7108.12.10, has sent shockwaves through the global bullion market.

Switzerland, the world’s leading gold refining hub, faces significant economic fallout, as it exported $61.5 billion in gold to the US in the year ending June 2025. The new tariffs could impose an additional $24 billion in duties, threatening to disrupt a critical trade flow.

The ruling came in response to a Swiss refinery’s request for clarity on gold bar classifications. With one-kilo bars being the primary format traded on New York’s Comex exchange, the world’s largest gold futures market, the decision has immediate implications for Swiss exporters and global investors. The move follows a broader 39% tariff on Swiss imports announced by the Trump administration, further straining US-Swiss trade relations.

Market Volatility and Supply Chain Strain

The tariffs triggered swift market reactions, with gold futures on Comex surging as Asian markets opened on August 8, 2025. December delivery contracts climbed over $100 per ounce above London’s spot price, driven by fears of supply disruptions. Gold prices, already up 27% in 2025 due to inflation concerns, rising US debt, and a declining dollar, briefly touched $3,500 per troy ounce, marking a historic rally. The tariff-induced uncertainty has amplified volatility in an already sensitive market.

Global gold trade relies on a delicate balance, with Switzerland recasting London’s 400-ounce bars into smaller one-kilo and 100-ounce bars for US markets. The new tariffs threaten this system, prompting some Swiss refineries to halt or scale back US shipments while others seek legal advice on potential exemptions. The disruption could reshape trade flows, with potential shortages looming if the tariffs persist.

Swiss Refiners Face Economic and Diplomatic Challenges

Switzerland’s gold industry, which processes over 2,000 tons of gold annually and accounts for 70% of the global market, is reeling from the ruling.

Christoph Wild, president of the Swiss Association of Manufacturers and Traders of Precious Metals, called the tariffs “another blow” to an industry already navigating heightened US-Swiss trade tensions. The tariffs, effective from August 7, 2025, coincide with broader trade disputes, as Switzerland’s efforts to secure exemptions during negotiations with the US, including a visit by President Karin Keller-Sutter, proved unsuccessful.

The economic impact is significant, as gold constitutes a major portion of Switzerland’s $36 billion trade surplus with the US in early 2025. Some Swiss refineries are exploring workarounds, such as shipping 400-ounce bars to the US for recasting, but this introduces logistical and cost challenges. The tariffs also raise questions about the future of Switzerland’s role as a global gold hub, potentially pushing trade toward other refining centers.

Broader Implications for Global Markets

The tariffs add a layer of political risk to a gold market already buoyed by economic uncertainty. Investors, seeking safe-haven assets amid fears of inflation and a weakening dollar, have driven gold prices to record highs, with Comex futures hitting $3,534 per ounce on August 8.

The ruling could exacerbate trade imbalances, as Switzerland’s gold exports inflate its trade surplus with the US, prompting calls from Swiss politicians like Green Party leader Lisa Mazzone for countermeasures such as a 5% export duty on precious metals.

As markets adjust, the tariffs may shift demand toward smaller gold bars and coins, potentially increasing their premiums, as noted by economist Peter Schiff. The decision underscores the fragility of global commodity flows in the face of abrupt policy changes, with ripple effects likely to influence gold prices, trade routes, and diplomatic relations in the months ahead.