The global gold market took an unexpected hit on July 31, 2025, when U.S. Customs and Border Protection (CBP) imposed tariffs on one-kilogram gold bars, a decision that went against earlier White House guidance and pushed prices higher.

Why it matters: The CBP’s tariff move impacts the $3 trillion gold trade, affecting Switzerland’s refining sector and causing price shifts. As of August 11, 2025, the change has prompted reactions from traders and officials trying to understand its scope.

Driving the news: The CBP’s ruling, reported by the Financial Times, shifted one-kilogram and 100-ounce gold bars to customs code 7108.13.5500, applying a 39% duty, despite an April 2025 White House statement suggesting an exemption.

• Gold futures in New York hit $3,560 per troy ounce on August 8, with December contracts $100 above the London spot benchmark, per TradeAlgo.
• Swiss President Karin Keller-Sutter visited Washington on August 7 but couldn’t meet with President Trump, leaving her country’s $10 billion U.S. export market in question.
• The White House said on August 8 it would issue an executive order to address the tariff situation, according to the Financial Times.

Catch up quick: Gold prices have fluctuated in 2025 due to economic and global factors. While Trump’s trade policies have included tariffs on various items, the CBP’s decision on gold bars—common sizes on the Comex exchange—caught the industry by surprise.

The intrigue: The tariff came from CBP, not a direct White House order, leading to questions about how the agency reached this conclusion. The mismatch with April’s guidance has people looking for more information on the decision-making process.

Background details: The tariff resulted from CBP reclassifying gold bars from a duty-free code to one carrying a 39% tariff, a change that surprised many who expected gold to stay exempt based on earlier comments.

Market Reaction to the Change

The gold market responded swiftly to the CBP’s announcement. Prices rose to $3,560 per ounce on August 8 in New York, then fell to $3,460 after the White House mentioned a possible clarification, per the Financial Times. Robert Gottlieb, a former JPMorgan Chase precious metals trader, said, “Gold moves constantly between central banks and reserves worldwide. We never imagined it would be hit with a tariff,” showing the unexpected nature of the move.

Asian refineries stopped sending gold to the U.S., impacting the $500 million monthly trade of one-kilogram bars, according to TradeAlgo. The London Bullion Market Association sought clarity on August 8, noting potential issues with the London-New York gold link. David Wilson from BNP Paribas SA remarked, “This is a dramatic change, and some think it could be a mistake on CBP’s part,” indicating the uncertainty.

Effect on Switzerland

Switzerland, a key player in gold refining, felt the impact. The country exports about $10 billion in gold to the U.S. annually, mainly in one-kilogram bars, now subject to the tariff. The Swiss Association of Manufacturers and Traders in Precious Metals stated on August 8 that this could affect global gold movement. Keller-Sutter’s trip to Washington didn’t yield a meeting with Trump, pointing to the challenge posed by the CBP’s action.

Possible Workarounds and Upcoming Developments

Some are considering options, like importing 400-ounce bars—which might avoid the tariff—and reshaping them in the U.S., a refinery manager told TradeAlgo. This could help manage costs but might alter supply chains. The White House’s planned executive order, noted on August 8, could change or uphold the CBP’s ruling, but no final decision has been released as of August 11.

If the tariff continues, it might lead to more refining in the U.S. Central banks, holding $2 trillion in gold reserves, could adjust their approaches, influencing market patterns. The next step depends on the executive order’s details.

Context of the CBP Decision

The tariff stemmed from CBP’s classification, not Trump’s direct policy. The April White House statement had suggested gold would be exempt, making the July CBP move stand out.

An X thread from Ann Vandersteel stated, “The gold tariff panic was made in a CBP office, not the Oval Office. The President’s team is now cleaning up the mess,” highlighting the agency’s role.

Trump’s trade efforts have included tariffs on various goods with exemptions like copper, but CBP’s action shows how agency decisions can shape markets differently. As of August 11, 2025, this reflects the layered nature of trade policy.

Looking Forward

The CBP’s tariff on one-kilogram gold bars has stirred the market as of August 11, 2025. With Switzerland impacted, shipments paused, and an executive order pending, the industry is watching for updates. This agency-led shift continues to influence the gold trade’s path.