Trump Comments on Gold Tariffs
On Monday, President Trump announced that gold bars will not be subject to tariffs, which sparked some relief in the global bullion market, especially after recent worries that precious metals might be affected by the ongoing trade tensions.
In a post on a social media platform, he stated, “Money is not a tariff!” This statement came amidst rising concerns about the implications of tariffs on gold.
Following Trump’s remarks, the US Spot Gold – a global standard – dropped by 1.2% to $3,357 per ounce, while Gold Futures saw a larger decline of 2.4%, settling at $3,407 after briefly surpassing $3,500 last week.
Independent gold market analyst Ross Norman expressed relief, stating, “I’m happy to hear that the crisis has been averted. The immeasurable potential for confusion will bring great relief to the bullion market.”
White House sources mentioned that Trump is expected to clarify further details regarding the situation with gold tariffs soon.
Some investors, surprised by the initial speculation about tariffs, had turned to gold as a safe asset, driving prices over $3,000 earlier this year.
Interestingly, just last Friday, US Customs and Border Protection indicated that certain gold bars, specifically from Switzerland, would incur a substantial 39% tariff under Trump’s policies.
Concerns were raised about the broader implications, as gold tariffs could potentially disrupt the global supply chain and inflate costs across the board for the metal. As one expert noted, “Money is a strategic asset, and keeping it tariff-free supports its role as a hedge against geopolitical instability.”
Notably, Trump has applied tariffs to numerous countries recently at rates higher than anticipated. The Swiss Precious Metal Association highlighted that the proposed US tariffs were particularly damaging to Switzerland, a key hub for gold refining, emphasizing that they could affect exporters globally. They warned that recent customs rulings might negatively influence the international flow of physical gold.
As for market reactions, Barrick Mining’s stock fell by 2.8% on Monday, while Newmont, the largest gold producer, also experienced a slight decline to $68.87.
