US slaps surprise tariffs on Swiss gold bars, roiling global bullion market

In a surprise move set to disrupt global bullion trade, the United States has imposed tariffs on one-kilogram and 100-ounce gold bars imported from Switzerland, a decision that could reverberate across commodity markets and sharply impact Switzerland’s multibillion-dollar gold export business. The new levies follow a July 31 ruling by US Customs and Border Protection (CBP), which reclassified these popular gold bar formats under customs code 7108.13.5500, a category now subject to tariffs. This marks a departure from prior expectations that such bars would be exempt under code 7108.12.10, the only gold product category still tariff-free under US trade rules.

Major blow to Swiss refiners

The tariff change comes just days after Washington announced a sweeping 39 per cent tariff on all Swiss imports, signalling further deterioration in US-Swiss relations. Switzerland, home to the world’s largest gold refining industry, exported $61.5 billion in gold to the US in the 12 months through June. The new ruling could slap an estimated $24 billion in additional duties on that trade volume alone.

The ruling was issued in response to a formal request for clarification by a Swiss refinery. Now, with legal certainty that one-kilo and 100-ounce bars are subject to tariffs, several refineries have paused or reduced shipments to the US, the Financial Times reported. Others are scrambling to consult legal experts to determine whether any bar formats still qualify for exemption.

Futures surge, supply chain squeezed

The fallout was immediate. Gold futures on New York’s Comex exchange, where one-kilo bars are the most common format, spiked as Asian markets opened on August 8. December delivery contracts soared to more than $100 an ounce above London’s spot price, reflecting rising uncertainty and potential supply disruption.

The gold trade operates through a finely balanced triangular flow: 400-ounce brick-sized bars move from London to Switzerland, where they’re recast into smaller kilo bars for the US market. That system now faces serious strain. Gold prices have already been on a historic rally, rising 27 per cent since late 2024, briefly hitting $3,500 per troy ounce, driven by inflation fears, fiscal instability, and a weakening US dollar. The new tariffs inject political risk into a market already on edge. For now, Swiss refiners are in limbo, and the broader bullion market may be only beginning to reckon with the consequences of this unexpected shift in US trade policy.