Trump's 39% tariffs on gold bars to wreak havoc on COMEX. Peter Schiffs explains how
Peter Schiff
, with a fear of a surge in premiums and a scramble to cover short positions on the
COMEX
.
Highlighting these risks, Peter Schiff took to X (formerly Twitter) to warn that Trump's tariffs could 'wreak havoc on the COMEX,' as shorts race to cover positions to dodge the hefty duties on Swiss gold bars.
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https://x.com/peterschiff/status/1953596316673880193?s=46
He noted that even the mere threat of tariffs will push bar prices higher due to scarcity and risk hedging.
'Trump's tariffs on 100-ounce and 1-kilo gold bars could wreak havoc on the COMEX. Prices could soar as shorts rush to cover to avoid having to pay 39% tariffs to import bars from Switzerland if longs take delivery,' Schiff said in his post.
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The new 39% tariff on one-kilo and 100-ounce gold bars may result in soaring prices as market participants rush to avoid the steep import duties. Even if the actual imports don't materialize, all such bars are likely to trade at elevated premiums, leading to widespread dislocations in pricing and liquidity.
The development follows a 31 July ruling by
US Customs
and Border Protection (CBP), which reclassified these bars under code 7108.13.5500—making them subject to import tariffs.
This closes the previous exemption under code 7108.12.10, which had allowed such imports to bypass duties. The Financial Times was first to report on the ruling, which could significantly impact gold trade flows, particularly from Switzerland.
Switzerland, home to the world's top gold refineries and a major bullion supplier to the US, exported $61.5 billion worth of gold to America in the 12 months through June. Under the new tariff regime, that volume would attract an estimated $24 billion in additional duties.
Christoph Wild, president of the Swiss Association of Manufacturers and Traders of Precious Metals, described the ruling as 'another blow' to Swiss gold exports to the US, as diplomatic tensions between Washington and Bern escalate.
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