Gold spared from tariffs, according to Trump, due to customs uncertainty
In a move that has sent shockwaves through the global gold market, President Trump announced a 39% tariff on large gold imports in August 2025. This decision, made on his Truth Social platform, immediately disrupted the market, causing prices to surge and unsettling key players such as dealers, refiners, and institutional investors.
The tariff, which was announced days after a letter from US customs authorities, lifted U.S. December gold futures to a record high of $3,534.10 per ounce. The steep levy on high-value gold imports serves multiple purposes: revenue generation and targeting Switzerland, a leading player in global gold refining and bar standardization.
The tariff effectively limits Swiss refined gold exports to the U.S. at favorable prices, disrupting Swiss dominance in the gold supply chain. This move can be interpreted as a response to ongoing trade tensions with Switzerland and an attempt to reduce U.S. reliance on Swiss refining.
Initially, there was confusion over whether all gold imports were subject to tariffs. However, the U.S. later clarified that certain bullion imports would not be subject to these tariffs, easing gold prices from record highs to around $3,394 per ounce. Prices remain elevated compared to prior levels, causing volatility and uncertainty in the market.
The Swiss Precious Metals Association has expressed concerns about the tariffs' impact and is actively engaging with stakeholders to address the issue. The announcement could potentially have significant implications for global trade of gold.
Meanwhile, the UAE is reported to have gold prices potentially reaching $3,500 due to central bank purchases. The confusion over tariffs threatened to disrupt global trade of the precious metal, but US President Donald Trump later announced on Monday that gold imports will not face additional tariffs.
In other news, the IMMAF Youth World Championships has commenced in Al Ain, and Mediclinic City Hospital and Mediclinic Parkview Hospital have achieved Center of Excellence Accreditation in Endoscopy. Elsewhere, Bangladesh has declared July 22 as a day of mourning following an Air Force jet crash that resulted in the death of 20 people. Lastly, Mark Schoombie and Tanya Harrison emerged victorious at the 2025 Open Scramble held at Jumeirah Golf Estates.
In the stock markets, heavy losses were experienced in April due to Trump's tariffs, but some economists have downplayed the global stock market plunge caused by the tariffs and stated there is "no reason" to anticipate a recession based on the tariffs.
As markets digest the court roadblock on tariffs, gold continues to hold firm, with investors awaiting US jobs data. India's Titan is also set to acquire a majority stake in Dubai's Damas for over Dh1 billion.
In conclusion, President Trump's gold tariff has caused volatility in global bullion prices, created uncertainty for major refining hubs, and prompted diplomatic and economic negotiations on trade levies affecting the gold industry.
- The business decision by President Trump to impose a 39% tariff on large gold imports, aimed at revenue generation and targeting Switzerland, has created turbulence within the gold industry, particularly in the finance sector, as prices surge and players scramble to adjust to the new industry landscape.
- As backlash echoes through the global trade industry, the tariff has led to a rise in gold prices in the UAE, potentially reaching $3,500 due to central bank purchases. This could significantly impact the gold industry, especially if other countries follow suit.
- While the tariff has caused initial uncertainty and volatility in the financial market, some economists have reassured consumers that there is no reason to anticipate a global recession based on the tariffs alone, as markets continue to digest the implications of this business move.
