The U.S. imposed tariffs on the import of one-kilogram gold bars, which, according to the Financial Times, threatens to escalate tensions in the global precious metals market and deals a new blow to Switzerland.
Precious metals traders expected that bars of one kilogram or 100 ounces would be exempt from Trump's actions, including the shocking 39% tariffs on Switzerland. However, the customs service classified these items under customs codes subject to taxation, as noted in a letter outlining the ruling.
"Gold is being transported between central banks and reserves around the world," said Robert Gottlieb, former precious metals trader and managing director at JPMorgan Chase & Co. "We never thought it would be subject to tariffs."
One-kilogram gold bars are the most common form on Comex, the world's largest gold futures market, and they make up a significant portion of Swiss gold bar exports to the U.S. The new tariff adds to the problems for the Swiss president after Trump set the highest rate for Switzerland among developed countries.
Gold futures in New York reached record highs. Contracts for delivery in December rose to a premium of over $100 per ounce above the global benchmark spot prices in London, as investors bet on import disruptions due to tariffs.$BTC #GOLD #NewsAboutCrypto #Binance #BinanceSquare