Trump’s tariff memo didn’t mention gold. So how did Customs decide to hit the precious metal? The reclassification came through on July 31. No press release, no Treasury announcement. Just a quiet move that sent prices soaring worldwide.
Gold shot up to $3,440 an ounce on COMEX. Retail prices in Delhi topped ₹1,02,700 per 10 grams. “Gold price in Delhi… 24-carat gold price was quoted at Rs 1,02,700 per 10 grams.” https://www.indiatvnews.com/business/markets/gold-price-today-24-carat-22-carat-mcx-silver-rates-citywise-comex-august-7-details-2025-08-07-1002428
One-kilo and 100-ounce pieces now face import duties. Customs shifted them under taxable codes, “subject to levels” [clarify: likely tariff tiers]. “The United States has imposed tariffs on imports of one-kilo gold bars… the letter said one-kilo and 100 ounce gold bars should be classified under a customs code subject to levels.” https://money.usnews.com/investing/news/articles/2025-08-07/us-imposes-tariffs-on-one-kilo-gold-bars-ft-reports
Swiss refiners were caught off guard. They shipped $61.5 billion worth of bullion to the US over the year ending in June. Now, an extra $24 billion in tariffs hits their bottom line. “Switzerland exported $61.5bn of gold to the US over the 12 months ending in June. That same volume would now be subject to an additional $24bn in tariff.” https://thegoldforecast.com/gold/2025/reports-new-tariff-bullion-send-gold-flying
India’s jewellery export chain is on the ropes. SEEPZ SEZ alone supports 50,000 jobs, with 85% of exports heading to the US. “Nearly 85% of exports from SEEPZ SEZ, which provides 50,000 jobs, are directed to the US.” https://www.fortuneindia.com/business-news/trumps-tariff-impact-india-to-lose-30-of-gems-gold-and-jewellery-exports/125556
Trump says tariffs protect US buyers. But those buyers are paying 25% more. He says the tariffs punish foreign producers. Swiss refiners don’t sell gold—they process it. He says tariffs help reduce debt. Meanwhile, gold demand just shot up.
Buy gold, get taxed. Sell gold, get taxed again. Triple whammy if you’re American: import duty, capital gains, currency conversion.
Still, no one explains why gold got reclassified. No models show the fallout on central bank flows. No one asks what happens when ETFs start rerouting through Singapore.
The memo is dated July 31. The Swiss refinery received it August 7. Gold prices surged August 7. So who got the jump on the market? And what happens next?
Trump's tariffs on 100-ounce and 1-kilo gold bars could wreak havoc on the COMEX. Prices could soar as shorts rush to cover to avoid having to pay 39% tariffs to import bars from Switzerland if longs take delivery. Even if they don't import, all such bars will trade at premiums.
— Peter Schiff (@PeterSchiff) August 7, 2025