💰 Panic in gold markets as US ruling freezes trade and triggers 39% tariff threat

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Tejaswini Deshmukh
Tejaswini Deshmukh is the contributing editor of RegTech Times, specializing in defense, regulations and technologies. She analyzes military innovations, cybersecurity threats, and geopolitical risks shaping national security. With a Master’s from Pune University, she closely tracks defense policies, sanctions, and enforcement actions. She is also a Certified Sanctions Screening Expert. Her work highlights regulatory challenges in defense technology and global security frameworks. Tejaswini provides sharp insights into emerging threats and compliance in the defense sector.

A recent US customs ruling has thrown the global gold trade into turmoil, prompting major suppliers to halt shipments to the United States. The confusion over whether certain gold bars will face steep import tariffs has put one of the world’s most important commodity flows on pause. The White House is now moving quickly to clear up the matter.

Gold Shipments to the US Come to a Sudden Stop

The global gold trade has hit an unexpected roadblock. Shipments of gold bars to the United States have been paused after a recent customs ruling caused confusion about whether certain gold bullion imports would now face heavy tariffs of up to 39%. The uncertainty has pushed major suppliers, including those in Switzerland, to halt deliveries until the matter is clarified.

At the center of the problem is a decision by US Customs and Border Protection (CBP), issued on August 8, 2025. It classified the most commonly traded gold bars in the US futures market, 1 kilogram bars and 100 troy ounce bars, under a customs code that was not included in an earlier exemption from tariffs. This means they could be treated as products subject to country-specific import duties.

Christoph Wild, President of the Swiss Association of Precious Metals Manufacturers and Traders, said the potential tariff would be a serious blow for the industry. He explained that with a 39% tariff, exports of gold bars to the US would “definitely be stopped.”

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For Switzerland, the world’s biggest gold refining hub, this development has created immediate challenges. The refiners there ship large volumes of these bars to the US every year. A 39% tariff would make these shipments far more expensive, effectively stopping trade in those products.

How a Technical Code Sparked Global Confusion

The issue comes down to a technical detail in the Harmonized System (HS), an international method for classifying traded goods. The CBP ruling placed 1 kilogram and 100 troy ounce gold bars under HS code 7108.13.5500. However, only products under a different code, 7108.12.10, were explicitly excluded from tariffs in the US trade list published in April 2025.

That small difference has big consequences. If the bars are classified under the non-exempt code, tariffs apply to imports from certain countries. For key suppliers, including Switzerland, this means the cost of gold entering the US would rise sharply.

The situation has already begun to disrupt the flow of gold in global markets. Switzerland plays a critical role in refining and redistributing gold from major producers around the world to markets like the US. With shipments paused, other countries and trading centers are watching closely.

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Independent analyst Ross Norman compared the possible tariff to “pouring sand into an otherwise well-functioning engine,” warning that such a move would slow down global gold trade.

Even though the confusion has rattled the trade, US gold futures prices have not surged dramatically. As of August 11, 2025, futures were trading at $3,457 per ounce, just 0.1% higher than the previous day. Spot gold, which reflects the global market price, stood at $3,398 per ounce. This small gap suggests traders believe the problem could be fixed quickly.

White House Moves to Set the Record Straight

The White House has stepped in to calm the situation. Officials have confirmed they are preparing an executive order to clarify the rules and address what they describe as “misinformation” about tariffs on gold bars. The use of that term signals that the tariffs may not have been intended for these products in the first place.

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Industry sources have been told that this clarification is a high priority and should be issued soon. The aim is to confirm whether the standard gold bars used in the US futures market are indeed exempt from tariffs, as many in the trade had believed before the recent CBP ruling.

For now, the US gold market remains steady thanks to unusually high inventories held in COMEX-approved warehouses. These stockpiles were built up between December 2024 and March 2025 as traders prepared for the possibility of broader tariffs on imported bullion. Current inventory levels are enough to cover about 86% of open futures contracts, much higher than the typical 40% to 45% coverage.

Market analyst Rhona O’Connell noted that the high inventory levels mean “there is no liquidity issue at present,” reassuring traders that the immediate supply situation is under control.

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Still, the halt in new shipments highlights how a single change in product classification can ripple through global supply chains. From miners and refiners to traders and investors, the effects are being felt across the gold industry. Many are waiting for the White House announcement to restore clarity and allow shipments to resume without the risk of steep tariffs.

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