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Gold Hit By Surprise US Tariffs, Unleashing New Turmoil

Is there *anything* this clown won't touch? I also wonder if this will encourage countries to continue, if not expand, their withdrawl of bullion from the NYC vaults out of concerns over soverignty and what is rightfully their property.


(Bloomberg) -- A Trump administration ruling that gold bars will be subject to tariffs stunned traders who had assumed they would be exempted, throwing bullion markets into turmoil.

Futures in New York, which are backed by bars shipped from Switzerland and other key trading and refining hubs, surged to a record.

Traders, analysts and executives across the industry had understood the bars would be exempt from reciprocal tariffs enacted by President Donald Trump, such as a 39% levy on Swiss goods. But when a gold refiner in Switzerland asked about it, US Customs and Border Protection clarified that one-kilogram and 100-ounce gold bars are subject to the levies, according to a letter from the agency.

The decision, if it remains in place, has sweeping implications for the flow of bullion around the world, and potentially for the smooth functioning of the US futures contract. Gold’s role as a financial asset and global currency sets it apart from other commodities like copper that have been roiled by tariffs, and traders said on Friday that shipments had largely frozen up in response to the shock news.

“In the long run, the existence of US tariffs on deliverable gold products raises the question on the role of futures trading in the US,” said Joni Teves, a strategist at UBS AG. “Until there is clarity, we expect the gold market and precious metals markets more generally to remain very nervous.”

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https://finance.yahoo.com/news/us-adds-surprise-gold-bar-045737320.html

Comments

  • Tariffs will apply to gold shipments of large sizes - 100 troy oz and 1 kilo (32,150.75 troy oz) gold bars.

    There is another complication in global trading of gold. Standard sizes vary by locations (NYC, London, Dubai, China, Switzerland), so it isn't just a matter of shipping gold from place A to place B. Gold at place A may have to be melted & recast into sizes acceptable at place B. To all those costs, add tariffs.

    Some gold is stored in vaults around the world & can be debited or credited without any physical movement.
  • No one man should have this much unchecked power.
  • edited 2:42PM
    Anna said:

    No one man should have this much unchecked power.

    You are absolutely correct.
    Unfortunately, many so-called "patriots" just don't seem to care about democratic principles.
  • "Unfortunately, many other "patriots" just don't seem to care about democratic principles." As exemplified by @FD1000, for example.
  • edited 2:55PM
    There is a White House clarification (re gold tariffs) in the process of being issued. So don’t do anything rash!
  • hank said:

    There is a White House clarification (re gold tariffs) in the process of being issued. So don’t do anything rash!

    Oh no! I was just driving to a dozen Costcos to pick up my bars…
  • equalizer said:

    hank said:

    There is a White House clarification (re gold tariffs) in the process of being issued. So don’t do anything rash!

    Oh no! I was just driving to a dozen Costcos to pick up my bars…
    Hope you have a big enough pickup to haul it all.:)

  • edited 3:28PM
    hank said:

    There is a White House clarification (re gold tariffs) in the process of being issued.
    So don’t do anything rash!

    Don't worry at all!
    The gold tariff is an incredibly thoughtful policy created by one of the smartest people on the planet.
    It just needs to be tweaked since markets were getting a bit "yippy."
    The administration will soon clarify all the "misinformation" reported by the mainstream media.
  • Speaking of Costco, I guess now the tomatoes from Mexico, the beef and orange juice from Brazil, and now gold are all a lot more expensive. Jeeeze!
  • Per BBG:

    The White House intends to post an executive order in the near future to clarify what an official called misinformation about the tariffing of gold and other specialty products. The official detailed the plans Friday on condition of anonymity.

    That's not 'misinformation', you doofus, it's self-inflicted confusion caused by your own economic geniuses who don't understand anything. Moreover, it should not require a formal 'executive order' to clarify things -- unless the Tariff Toddler wants another photo op because it would deal with his favorite thing: GOLD. *grumble*
  • edited 3:34PM
    “Who’s on first?” / Where’s Epstein?
  • hank said:

    equalizer said:

    hank said:

    There is a White House clarification (re gold tariffs) in the process of being issued. So don’t do anything rash!

    Oh no! I was just driving to a dozen Costcos to pick up my bars…
    Hope you have a big enough pickup to haul it all.:)

    Unfortunately my wallet can’t handle more than a few 1 ounce “bars”.
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