White House to exempt gold bars from tariffs amid market turmoil what happens to Indian investors

The White House is set to clarify its stance on gold imports by issuing an executive order that will exempt gold bars from US import tariffs, according to Investing.com. This announcement follows days of market confusion that drove gold prices to unprecedented highs. The clarification aims to resolve uncertainty caused by recent rulings on tariffs affecting gold bullion, which had rattled investors and pushed prices to record levels.

The issue originated with a ruling from US Customs and Border Protection (CBP) stating that one-kilogram and 100-ounce gold bullion bars—the most commonly traded sizes on the Comex exchange—would be subject to country-specific tariffs. This decision raised concerns that imports from Switzerland, the world’s leading gold refining center, could be hit with a 39% tariff.

Following reports of the expected exemption, US gold futures eased off their recent peaks, dropping back from a record high of $3,534.10 an ounce.

“Gold’s rapid surge highlights that even traditional safe-haven assets are vulnerable to market turmoil in an era marked by tariff uncertainties,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

Brian Lan, managing director at GoldSilver Central in Singapore, said the tariffs on gold bars “will cause disruptions or challenges in settlement processes for major banks,” which was evident in this morning’s liquidity, as prices surged across the board.

Earlier, gold futures had reached an all-time closing high of $3,491.30 per ounce, before pulling back to $3,463.30 in response to the White House’s announcement. US gold futures pared gains further to trade just 0.1% higher at $3,457 per ounce, while spot gold prices remained steady around $3,398. The decline followed a White House statement indicating the administration’s intent to clarify tariff regulations for gold bars and other specialised products via an executive order.

Gold tariff confusion

The turmoil began when US Customs and Border Protection clarified that one-kilogram and 100-ounce cast gold bars, which are the dominant sizes in the US futures market, would not be exempt from the 39% country-specific import tariffs introduced by the Trump administration on Swiss exports.

CBP specified that these gold bars fall under the HS customs code 7108.13.5500, a classification not included in the tariff exemption list published by Washington in April. This ruling impacts not only Switzerland—which is the world’s largest refining and distribution hub for gold bullion—but also any other countries exporting these sizes of gold bars to the US.

The Swiss Precious Metals Association voiced strong concerns over the decision, warning that it could severely disrupt global bullion flows.

Reuters reported that some Swiss refineries have temporarily halted shipments to the US amid the tariff uncertainty. Analysts have also suggested that if tariffs are applied, the price gap between Comex gold and London gold could widen, creating fresh arbitrage opportunities.

Switzerland exported $61.5 billion worth of gold to the US last year, primarily in one-kilogram bars. A 39% tariff would add roughly $24 billion in costs. Swiss officials are currently engaged in discussions with the US government to negotiate a reduction or removal of the tariffs.

Impact in India

In India, the impact of these global developments is already being felt. Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, noted that gold prices in India have surged to ₹100,942 per 10 grams for 24-karat purity. This rise is driven by strong safe-haven buying amid ongoing global uncertainty, escalating geopolitical tensions, and expectations of an upcoming rate cut by the U.S. Federal Reserve.

Kamboj highlighted that the recent U.S. tariffs on imports of one-kilo and 100-ounce gold bars are further disrupting the global bullion market, particularly impacting Switzerland, the world’s top gold refining hub. According to a U.S. Customs Border Protection ruling dated July 31, these gold bars fall under a customs code subject to tariffs. One-kilo bars, the primary format traded on Comex and the backbone of Swiss bullion exports, now face a 39% tariff that could add approximately $24 billion in costs based on last year’s $61.5 billion export volume. This tariff took effect on Thursday, adding a fresh layer of uncertainty to an already volatile market.

Despite these challenges, Kamboj emphasized that domestic demand in India remains strong, especially with the upcoming festive and wedding seasons, which traditionally drive high gold purchases. She reassured investors that gold continues to be a vital store of long-term value and a hedge against inflation and currency fluctuations.

“Even as prices reach record highs, gold remains an essential portfolio diversifier,” Kamboj said. She recommended that investors consider a staggered approach, such as systematic investment plans (SIPs) in gold ETFs or sovereign gold bonds, to navigate market volatility while maintaining long-term exposure. Kamboj also pointed out that any short-term price corrections due to profit booking could present attractive new entry points for investors.