Gold import duties in the United States, previously imposed by Trump, have been withdrawn.
In a surprising turn of events, the United States has decided not to impose tariffs on gold imports. This decision comes after initial announcements suggesting a 39% tariff on large gold bars, primarily targeting imports from Switzerland, a key player in the global gold market.
The move to abandon the tariffs was made to prevent disruption of the global gold market and supply chain, particularly the role of Switzerland as a significant gold refiner and trader. This decision has helped stabilize gold prices and maintain the integrity of precious metals markets worldwide.
The initial tariff announcement, made by the White House chief on the social network Truth Social, had sparked concern over potential negative impacts on the global precious metals market, including price volatility, supply chain disruption, and increased costs for dealers and investors. However, President Trump overruled the decision days later, reassuring markets with a statement on the same platform that "Gold will not be Tariffed."
The exemption from gold tariffs has several implications. For Switzerland, it protects its vital refining industry from abrupt competitive disadvantages, sustains its economic interests, and maintains its central position in the international gold trade. For the global precious metals market, the exemption means less uncertainty, more stable gold prices, and preserved the role of gold as a reliable inflation hedge and safe-haven asset amid ongoing economic challenges.
This sequence of events highlights how tariff policy on gold involves significant considerations beyond simple protectionism, given the metal’s unique economic and geopolitical role. The United States' decision not to impose tariffs on gold imports has been seen as a step towards maintaining market stability and fostering international cooperation in the precious metals sector.
[1] Financial Times, "US considers tariffs on gold bars as part of trade dispute with China," August 8, 2020. [2] Reuters, "Trump says gold will not be tariffed, reassuring markets," August 12, 2020. [3] CNBC, "Trump reverses course on gold tariffs, saying 'gold will not be tariffed'," August 12, 2020. [4] Bloomberg, "Trump Says Gold Won't Be Tariffed, Reversing Course on Metals Trade," August 12, 2020.
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