US targets one-kilo gold bars with new tariffs, pressuring Swiss exporters: Report

The US government has started levying tariffs on one-kilo and 100-ounce gold bars, a decision that could upend long-standing trade routes and disrupt the flow of bullion from Switzerland to America, as reported by the Financial Times.

According to a 31 July ruling from US Customs and Border Protection (CBP), these gold bars will now fall under classification code 7108.13.5500, which is subject to tariffs. That reclassification shuts the door on previous expectations that such imports would be exempt under code 7108.12.10, the only category of gold bars currently not taxed.

The change, first reported by the Financial Times, is expected to hit Switzerland the hardest. It’s the world’s top gold refining hub and a major supplier of bullion to the US.

Switzerland faces sharp tariff blow

Relations between Washington and Bern have worsened recently. Just last week, the US announced a 39 percent tariff on all imports from Switzerland. That includes gold, one of Switzerland’s biggest exports to the American market.

In the 12 months to June, Switzerland exported $61.5 billion worth of gold to the US. Under the new tariff rate, that volume would now face roughly $24 billion in additional duties.

As told to FT, Christoph Wild, president of the Swiss Association of Manufacturers and Traders of Precious Metals, called the ruling “another blow” to Switzerland’s gold trade with the US.

"The prevailing view was that precious metals remelted by Swiss refineries and exported to the US could be shipped tariff-free," said Wild. "However the custom code classification for different gold products is not always precise."

Uncertainty forces refineries to pull back

The CBP ruling followed a formal request from a Swiss refinery seeking clarity on gold classifications. The agency’s response has left little room for interpretation, one-kilo and 100-ounce bars are now taxable.

Faced with this, some Swiss refineries have pulled back. Two told the Financial Times they’ve either slowed or stopped shipments to the US altogether. Others have spent months consulting lawyers to determine whether any gold formats remain exempt.

The classification issue may appear technical, but it’s had swift practical consequences. Gold trades depend on speed, certainty, and clear customs rules. Now, that clarity has vanished.

Why the one kilo bar matters

At the heart of this story is the humble one-kilo gold bar. Roughly the size of a smartphone, it’s the most traded bar on Comex, the world’s largest gold futures market based in New York. It also represents the majority of Switzerland’s bullion exports to the US.

In contrast, the London market uses the much larger 400-troy-ounce bars, closer in size to a brick. These large bars typically travel from London to Switzerland, where they’re recast into smaller formats for the US market. This triangular trade system has kept global bullion moving for years.

That flow is now under threat.

Futures prices react as market opens

The news triggered a jump in futures prices. As Asian markets opened Friday, the premium for gold contracts on Comex soared. December delivery contracts climbed to over $100 an ounce above London’s spot price, a sign of growing uncertainty and demand imbalances.

Earlier this year, gold traders had already scrambled to build up US stockpiles ahead of Donald Trump’s so-called “liberation day” tariffs. That rush temporarily drained London’s supply and raised fears of a repeat disruption.

This latest CBP ruling adds another layer of pressure.

Historic rally meets political friction

Gold has been on a steep climb since late 2024. Prices have risen by 27 percent, briefly touching $3,500 per troy ounce. Drivers include rising inflation fears, questions over US debt sustainability, and a slow decline in the dollar’s global dominance.

This new tariff adds a political twist to what had been an economic story. While markets were already nervous, this US–Swiss trade friction could further reshape how gold flows across borders and at what cost.

For now, Swiss refiners are left guessing. The US has made its position clear, but the fallout for global markets may just be getting started.