Gold futures jump to record high after US tariffs on cast bars
The price of gold futures have soared to a record high after it emerged that the US would put tariffs on imports of 1kg bars in a further trade blow to Switzerland, which dominates the world’s refining industry.
Swiss exports to the US were hit by a crippling 39% tariff on Thursday after the country’s president returned empty-handed from a last-minute dash to Washington in an attempt to get the rate, among the highest imposed by Donald Trump, lowered.
It later emerged that US customs had decided that certain imports of gold bars that had been in a tariff-exempt category should also be covered by the 39% rate.
The detail was revealed in a ruling letter – used by the US to clarify its trade policy – signed on 31 July and sent in response to a law firm’s request for clarification on the classification of gold for a New York precious metals trader and financier.
US Customs and Border Protection wrote back that 1kg and 100-ounce cast bars were not exempt from tariffs, adding: “Both types of bars are used primarily to back contracts on the Commodity Exchange (Comex), but are also sold to jewelers or industrial consumers for manufacturing purposes.”
