Gold Prices Drop Nearly 2.5% After Trump Exempts Bullion from Import Tariffs

Global gold prices fell sharply on Monday (August 11), tumbling nearly 2.5% after U.S. President Donald Trump announced that gold would be excluded from newly imposed import tariffs—reversing an earlier ruling by U.S. customs officials.

In a post on Truth Social, Trump stated, "Gold will not be taxed!", triggering an immediate market reaction. Gold futures dropped 2.48% to settle at $3,404.70/oz following the announcement.

Market Reverses After Hitting Record Highs

Just three days earlier, on August 8, gold prices had surged to a record high, driven by a ruling from the U.S. Customs and Border Protection (CBP) that 1kg and 100oz gold bars imported from Switzerland would be subject to a 39% tariff, in line with Trump's broader tariff policies on Swiss imports.

These specific gold bars are widely used as collateral for gold futures contracts on the COMEX exchange, a major global commodities market.

However, Trump’s unexpected announcement effectively overturned the CBP decision, catching traders off guard and sending prices into sharp correction territory.

Global Bullion Market Voices Concerns

The Swiss Precious Metals Association had warned that such a ruling could have far-reaching consequences—not only for Switzerland but for all countries exporting these bullion types to the U.S. In essence, the ruling implied that imported gold would be taxed based on its country of origin.

The Association further noted on August 8 that such policies could disrupt global physical gold flows, potentially leading to market imbalances, especially amid ongoing geopolitical and economic uncertainties.

Trump’s exemption of gold came just days after he announced a sweeping wave of retaliatory tariffs against multiple U.S. trading partners on August 7. Many in the market had feared that gold, due to its strategic value, might also be targeted—contributing to its earlier rally.

With gold now officially excluded, the rally has cooled, and traders are reassessing the broader impact of U.S. trade policy on commodity markets.