New tariffs on Swiss kilo and 100toz gold bars

[pmbug]

The US has slapped tariffs on imports of one-kilo gold bars, in a move that threatens to upend the global bullion market and deal a fresh blow to Switzerland, the world’s largest refining hub.

The Customs Border Protection agency said one-kilo and 100-ounce gold bars should be classified under a customs code subject to levies, according to a so-called ruling letter dated July 31, which was seen by the Financial Times. Ruling letters are used by the US to clarify its trade policy.
...

More:
https://www.ft.com/content/78be1315-608 ... b9e18c5ce7

[ochotona]

That was pretty jaw-dropping.

It's an attempt at capital flow control. They don't want organizations settling in gold. They want to push them through SWIFT and the US Dollar.

However, if a US firm has a trade surplus with a foreign entity, and would like to settle in gold by having gold sent to them... well, now that's harder. So it's punishing successful US exporters who want to settle in gold.

Also, that US person who is a net exporter can still settle in gold, so long as the gold is outside US borders. They will just use secure ledgers and move the gold from one nonUS location to another nonUS location.

"{gasp} You mean the ledgers can travel outside of the US without any tariff???" What is this sorcery... FTP? Email?"

This deal smells like a Lutnick. It's just clumsy and stupid enough.

The tricky part comes if they BAN ANY GOLD FROM LEAVING US BORDERS no matter who owns it. That's next. Then I don't know what happens. Then we're N Korea or something.

[coasting]

Gold futures normalized late afternoon:

GoldFutures20250808.PNG (57.73 KiB) Viewed 255 times

after this report
https://www.cnbc.com/2025/08/08/gold-fu ... riffs.html
Gold futures trade off highs as White House to issue clarification on bullion tariffs
Gold prices fell from a record high Friday after the White House said it will clarify “misinformation” about the precious metal facing tariffs.
“The White House intends to issue an executive order in the near future clarifying misinformation about the tariffing of gold bars and other specialty products,” a White House official told CNBC.

It's an attempt at capital flow control. They don't want organizations settling in gold. They want to push them through SWIFT and the US Dollar.

Never suspect malice when incompetence will suffice.

[pmbug]

Donald Trump will issue an executive order “clarifying” the US’s stance on gold bar tariffs, after a ruling that a widely-traded form of the precious metal is subject to levies sent shockwaves through the bullion market.

“The White House intends to issue an executive order in the near future clarifying misinformation about the tariffing of gold bars and other speciality products,” a White House official said on Friday.
...

https://www.ft.com/content/c2868087-995 ... 82437f603a

I was anticipating this. The CBP letter seemed like some administrative flunkies interpreting administration policy. There seems to be a breakdown in communication in the administration.

[stpeter]

There seems to be a breakdown in communication in the administration.

Ya think?

[ochotona]

Wow.

[seajay]

It's an attempt at capital flow control. They don't want organizations settling in gold. They want to push them through SWIFT and the US Dollar.

The US has been running with a deficit, borrows from abroad, buys more imports than it exports. Lower interest rates paid by the US than what it receives from others has been a net benefit to the US. A carry trade. Now however others are opting to not lend to the US (buy/hold dollars) but instead opt for trade deficit payments in gold, where a $1Tn trade deficit could deplete all of US gold reserves in less than a year.

Tariffs will still end up being paid by Americans aren't as Trump suggest paid by others, but where collection of such might enable lower taxes of wages/whatever. Trump would like and is almost forcing the Fed to lower US interest rates, whereas the market may very well demand higher interest rates in order to avoid otherwise buying/holding (converting dollars to) gold. Lowering interest rates will just engage further US inflation and a more rapid exodus of US gold. The liability of the US debt is being transitioned to being primarily a US (Americans) liability. Much of the world has already started transitioning away for the dollar and SWIFT clearance system for alternatives. Absent the US being able to export inflation and having carry trade benefits Americans will for the first time in decades start having to manage austerity. The US had distinct advantages that sanctioning Russia and now Trumps tariffs are totally destroying. As part of that it will no longer be able to export inflation to fund the likes of a massive military might, enabling China's military to rise to become dominant.

Trump said he could end the Ukraine war in a day, come Friday and he's now desperate for it to end in the hope of avoiding the decline of the dollar as a primary international trade settlement currency becoming a torrent. Putin accordingly will make extreme demands that Trump will either give in to, or more likely IMO just lead to further prolongation, leading to a torrent.

Fundamentally applying sanctions on Russia (weaponizing SWIFT), followed by Trumps tariffs, are killing the American golden goose.

[boglerdude]

Commies lament that Americans will pay tariffs. So? We pay tax either way. As if its "empathy" like covid (the seniors!) and not an effort to twist the narrative against conservatives. You can tell CCP will eat most of the tariffs by how riled up they are, astroturfing reddit. And the fact that they pay low wages and like most businesses are already charging as much as they can in markets.

Cleanest dirty shirt in the laundry
https://old.reddit.com/r/ukpolitics/com ... speech_in/