Gold plummets 2.3% after Trump admin slaps 39% tariff on Swiss bullion imports

Gold prices experienced a significant correction after surging to a record high of $3,534.10 per ounce on July 30, driven by a sudden 39% tariff on Swiss bullion imports announced by the White House. The policy shift, described as a “reciprocal” measure, triggered immediate confusion among traders and led to a sharp spike in gold futures volatility [7]. This uncertainty caused gold to retreat from its all-time peak and settle around $3,454 per ounce by late August [8].

The tariff, which applies to one-kilogram gold bars typically imported from Switzerland, created a regulatory gray area regarding customs classification. This ambiguity led to a pause in some gold bar shipments to the U.S., as importers sought to avoid potential unexpected duties [5]. The market’s response was further complicated by conflicting statements from the Trump administration, which added to the sense of unpredictability and eroded investor confidence [2].

A senior administration official confirmed that an executive order was being prepared to clarify the tariff’s scope, aiming to address what the administration called “misinformation” regarding the policy [2]. However, instead of calming the market, the announcement intensified speculation about the broader implications for global bullion trade flows. The lack of a clear and consistent message from the White House has been cited as a key factor contributing to the market’s instability [8].

Gold futures and spot prices also reflected the heightened uncertainty, with the spread between the two peaking at over $100 before narrowing to $91 by late July [9]. Spot gold, although down from its intraday high, remained up nearly 1 percent for the week, signaling a cautious but resilient market [9].

Industry analysts have weighed in on the situation, noting that the confusion stems from the unclear application of tariffs on a highly liquid and globally traded asset. Han Tan, chief market analyst at Nemo.money trading group, remarked that “the shock and confusion in markets are partly due to the unclear application of these tariffs,” emphasizing the need for clearer guidance [8].

While the administration’s promise to issue an executive order has been seen as a step toward restoring clarity, the delay in providing definitive policy details has left traders in a state of uncertainty. Many are now questioning whether the tariffs will be rolled back or applied selectively in the future.

As the situation continues to evolve, the global gold market remains on edge, with the outcome of the White House’s clarification expected to have long-term implications for bullion trade dynamics and investor behavior. The broader financial markets, including cryptocurrencies and traditional equities, are also watching closely, as trade policy continues to influence macroeconomic sentiment.

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[1] title1.............................(https://www.reuters.com/world/china/us-gold-futures-pare-gains-after-official-says-white-house-clarify-tariff-policy-2025-08-08/)

[2] title2.............................(https://www.axios.com/2025/08/08/gold-trump-tariffs)

[3] title3.............................(https://www.herobullion.com/gold-futures-volatility-spikes-news-8-8-2025/?srsltid=AfmBOopHcIhTjA0vOZKW_jgZ8Kmz482bDoTAXNoPd4MKCB8cjzI-Uq7L)

[5] title5.............................(https://www.reuters.com/world/china/us-gold-futures-hit-all-time-high-tariff-uncertainty-over-bullion-imports-2025-08-08/)

[7] title7.............................(https://www.tradealgo.com/news/tariffs-hit-gold-by-surprise-triggering-new-turmoil)

[8] title8.............................(https://www.bnnbloomberg.ca/markets/gold/2025/08/09/gold-futures-hit-record-on-us-tariff-shock-mixed-day-for-stocks/)

[9] title9.............................(https://nypost.com/2025/08/08/business/gold-futures-hit-all-time-high-as-tariff-uncertainty-sparks-turmoil/)