The United States has imposed tariffs on imports of one-kilo gold bars, the Financial Times reported on Thursday, citing a letter from Customs Border Protection.
The letter – dated July 31 – said one-kilo and 100 ounce gold bars should be classified under a customs code subject to levels, according to the newspaper, which added that the move could impact Switzerland, the world’s largest refining hub.
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.
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.
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 smal ..
