Gold Supply Chain: Blockage in the Distribution Network
The United States announced a 39% tariff on Swiss gold bars weighing one kilogram or 100 ounces on July 31, 2025. This move has stirred up significant reactions in the gold market and beyond.
Potential Impacts and Implications
The tariffs have caused shockwaves in international bullion markets, increasing price volatility and compelling traders to reconfigure supply chains. The financial burden on Swiss gold exporters could be substantial, with approximately $24 billion in additional costs if current trade volumes persist.
The sector most directly affected by these hefty tariffs is Switzerland’s dominant gold refining sector, given the country’s role in supplying standard gold bar formats in the physical market. The tariffs could potentially lead to supply shortages and rising prices in the U.S. market, as warned by the Swiss Association of Precious Metal Producers and Traders.
Political and trade relations tensions have also arisen, with Swiss lawmakers viewing Swiss gold refiners as scapegoats for broader failed tariff negotiations with the U.S. This tariff has contributed to tensions in U.S.-Swiss trade relations amid wider disputes.
However, the situation remains uncertain pending executive clarification. President Donald Trump has publicly stated that gold would not be subject to tariffs, indicating potential upcoming executive action that could clarify exemptions. This creates ambiguity around the final policy impact. A White House official mentioned an executive order might clarify or adjust the tariff situation concerning these gold bars.
Gold Market Response
The gold price surged to $3,400 on Thursday, marking an increase of nearly 1 percent, as traders reacted to the news of the tariffs. Precious metal expert Markus Bußler provides insights on which gold mining stocks offer attractive entry points and have the potential to multiply in the Goldfolio newsletter. The momentum in the gold market appears to have shifted in favor of the bulls, with gold mining stocks poised to benefit from this development, having shown relative strength in recent days.
[1] Financial Times, "U.S. to impose tariffs on Swiss gold bars," July 31, 2025. [2] Swiss Association of Precious Metal Producers and Traders, "Statement on U.S. tariffs on Swiss gold bars," August 1, 2025. [3] Reuters, "Trump promises to address gold tariffs, creates uncertainty," August 3, 2025.
Investing in real-estate might become more attractive because of the tariffs on Swiss gold bars, as the financial burden and potential supply shortages in the U.S. market could lead to rising prices in the gold market, according to the Swiss Association of Precious Metal Producers and Traders. The finance sector could see a shift towards real-estate investment as a potential hedge against gold market volatility, given the current state of uncertainty concerning the tariffs.
