US imposes tariffs on 1-kg gold bars

Gold bars

The US imposed tariffs on imports of 1-kilogram gold bars, the Financial Times reported on Aug. 7, citing a letter from the Customs and Border Protection.

However, this move threatens to disrupt the global gold market, marking a new escalation in trade tensions with Switzerland.

According to a letter from the Customs and Border Protection, dated July 31, the one-kg and 100-ounce gold bars should be classified under a customs code subject to higher tariffs.

The one-kg bars are the most actively traded on the Chicago Mercantile Exchange and account for the majority of Swiss gold exports to the US. The large bars are shipped from London to Switzerland, where they are recast into smaller sizes—particularly the one-kg bars favored in the New York market.

Switzerland exported $61.5 billion worth of gold to the US in the 12 months ending in June. These imports will face additional US tariffs amounting to about $24 billion, under the 39% tariff rate that took effect on Aug. 7.