According to a report by the Financial Times on Thursday, August 7th, the U.S. Customs and Border Protection (CBP) classified one kilogram and 100 troy ounces of gold bars as “customs codes subject to taxation” in a ruling letter dated July 31. Switzerland’s gold exports are expected to be the first to be affected by this decision.
The U.S. policy of imposing tariffs on one kilogram gold bars could potentially disrupt the global gold bar market and deal a new blow to Switzerland, the world’s largest gold bar refining center.
One kilogram gold bars are the most common form of trading on the world’s largest gold futures market, the New York Mercantile Exchange (Comex), and they are a major source of gold bar exports from Switzerland to the United States. Industry insiders had originally thought that U.S. Customs would classify gold bars using different customs codes to avoid the impact of new tariffs.
The ruling letter reported on Thursday is the U.S. Customs’ formal response to a clarification request from a refining plant in Switzerland. The ruling states that one kilogram and 100 troy ounce gold bars fall under the classification code 7108.13.5500, and not the uniquely duty-free code 7108.12.10.
Christoph Wild, President of the Swiss precious metals manufacturing and trading association, told the Financial Times that this tariff ruling has dealt another blow to gold trade between Switzerland and the U.S. Wild added that high tariffs will suppress the demand for gold.
Earlier this year, prior to the implementation of the “Independence Day” tariffs announced by Trump, traders rushed to bring gold into the U.S., leading to record levels of gold stockpiles on the Comex and temporary shortages in the London gold market.
Following the announcement of these tariffs, many commodities were granted exemptions, including certain types of gold bars.
According to the Financial Times, global gold bar trade flows in a triangular pattern: large gold bars are transported between London and New York, passing through Switzerland, where they are recast into various sizes of gold bars.
These two markets use different sizes of gold bars, with the London market favoring 400 troy ounce gold bars, roughly the size of a brick, while the New York market prefers kilogram-level gold bars, roughly the size of a smartphone.
In 2025, gold bar prices experienced a historic surge, rising 27% since the end of 2024 and briefly reaching $3,500 per troy ounce. Concerns about inflation, government debt levels, and the depreciation of the U.S. dollar as a reserve currency have all contributed to the soaring global gold prices.
In the twelve months leading up to June, Switzerland exported $61.5 billion worth of gold to the U.S. With the 39% tariff rate that took effect on Thursday, these gold exports will incur an additional $24 billion in tariffs.
Several Swiss gold refining plants have stated that they have spent months consulting with lawyers to determine which types of gold products are exempt from tariffs and which are not. Two refineries told the Financial Times that due to the uncertainty, they have temporarily reduced or halted shipments to the U.S.
Customs data shows that gold is one of Switzerland’s largest commodity exports to the U.S.