President Donald Trump weighed in on Monday, saying that US tariffs will not be applied to gold imports, following a government decision that left the world’s bullion markets in disarray.
Trump’s post had no effect on gold futures trading on the Comex in New York and the worldwide benchmark for spot prices in London. Although it had recovered some of its losses, spot gold was still down more than 1.2% for the day.
As of Monday afternoon, U.S. agencies had not yet announced any official, revised policy. Following the surprise decision by US Customs and Border Protection that gold bars would be subject to tariffs, a White House official last week hinted the administration will release a new policy clarifying whether the imports would be subject to import taxes.
The decision established that Trump’s country-based tariffs will apply to 100-ounce and one-kilogram gold bars starting on August 7. The action took the shape of a letter asking a Swiss refiner how gold is treated, which was subsequently made public on the agency’s website.
If the ruling had been upheld, it would have had far-reaching effects on bullion globally and possibly on the seamless operation of the US futures market. Gold is distinct from other commodities like copper that have been affected by tariffs due to its function as a worldwide currency and financial asset.
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