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CNBC
a day ago
- Business
- CNBC
Gold futures just hit a record high. Possible U.S. tariffs could shake metal markets up further
Gold futures hit a record high on Friday after U.S. authorities said tariffs should be imposed on some gold bars — and some strategists say there is more upside ahead for the metal. U.S. gold futures for December delivery touched on an all-time high of $3,534.10 on Friday morning, before climbing down to trade at around $3,495 by 10 a.m. ET. Spot gold , meanwhile, was little changed at around $3,400 per ounce. @GC.1 1D line Gold futures price It came after a "ruling" letter from the U.S. Customs and Border Protection agency (CBP) suggested cast gold bars from Switzerland should be subjected to new import tariffs on Swiss goods. The news was first reported by the Financial Times. Earlier this week , U.S. President Donald Trump's 39% "reciprocal" tariffs began to apply to Swiss goods. However there has been some confusion on whether the "reciprocal" duties apply to gold bars. In the July 31 letter which was a response to a Swiss gold refinery's request for clarification on tariffs, the CBP said one-kilogram and 100-ounce gold bars should be categorized under a customs code that market watchers say will not exempt them from reciprocal tariffs. The CBP said in its ruling letter that the bars in question should not be classified as unwrought non-monetary gold bullion or dore — which is categorized with the Harmonized Tariff Schedule (HTS) code 7108.12.10. Instead, the agency said, the bars should be classified under the customs code 7108.13.5500. Switzerland, the world's largest gold refiner, shipped 192.9 metric tons of gold to the U.S. in January. In a Friday note to clients, Michael Hsueh, a research analyst at Deutsche Bank, said only gold fitting the 7108.12.10 classification was exempt from U.S. tariffs. He said uncertainty on gold tariffs "re-emerged" on the back of the FT publicizing the CBP's ruling, labeling the gold futures spike "a reprise of the importing rush" that took hold in late 2024 and earlier this year. Demand for gold, widely seen as a safe haven asset in times of market turbulence, has risen this year, sending prices soaring . The CBP's letter also explained that in line with new U.S. Executive Orders, all imported merchandise must now be reported to customs with details of either the reciprocal tariff that applies, or details of provisions that exempt the goods from reciprocal tariffs. The duty rate for gold varies based on its specific characteristics and country of origin, a spokesperson for the U.S. International Trade Commission said Friday. In its ruling letter, the CBP told the Swiss refiner that its one-kilogram and 100-ounce bars failed to qualify in the 7108.12.10 category, as they had been stamped and needled or lasered with identifying information. They were therefore too processed to qualify as unwrought. Deutsche Bank's Hsueh said in his note that while it was too early to make any final judgements on the CBP's letter, "on the face of it the CBP ruling is applicable to [gold imported from] all countries." However, Hsueh suggested there could be ways for gold exporters to skirt around U.S. tariffs. "The failure of tariff exemption is based on the nature of the manufactured gold bar and its HTS classification, rather than being dependent on the country of origin," he explained, referring to the International Trade Commission's Harmonized Tariff Schedule — the database that holds the customs codes for imported goods. "There is nothing in the CBP ruling which precludes the gold refiner from adjusting its operations to produce gold in a format which fits HTS code 7108.12.10, thereby qualifying for tariff exemption. This could take the form of a cast bar which is only minimally processed after the fact, or granules which are likely to also qualify as minimally processed." Jitters ahead The new ruling on tariffs surprised the gold market, according to Joni Teves, strategist at Swiss investment bank UBS. "This creates an issue for the global gold market which uses Comex gold futures to hedge positions, with the assumption that it can easily import metal into Comex warehouses in the US to physically settle contracts if needed," she said in a Friday note. "The tariff adds costs to this process, and with the bulk of refining capacity sitting in Switzerland which faces 39% US tariffs, these costs would be quite high." Teves argued that until there is clarity on gold tariffs, markets were likely to "remain jittery." "Historically, the vast majority of Swiss gold exports to the US have fallen under the 7108.12 (unwrought) category, which is exempted from tariffs," she said. "On average, this tariff-exempt category accounted for ~78% of Swiss gold flows to the US." Like Hseuh, UBS' Teves suggested that the gold industry may react by changing delivery standards — this could include allowing settlement in alternative locations such as London. "In the long run, the existence of US tariffs on deliverable gold products raises the question on the role of futures trading in the US as a means to hedge and whether other centres eventually step up as alternatives," Teves added. "There is still a lot of uncertainty around all this and until there is clarity, we expect the gold market and precious metals markets more generally to remain very nervous." Philippe Gijsels, chief strategy officer at BNP Paribas Fortis, told CNBC on Friday that he was more bullish than ever on gold. His target price for gold is $4,000 per ounce, but he believes that the metal could even exceed this price point. "The news on the tariffs on gold risks creating a market dislocation like copper," Gijsels said. "So volatility will increase, but we live more than ever in an uncertain world. In a world where the independence of the Fed lies in the balance and there are more questions about the long term sustainability of [government] debt, inflation will rise and we have to invest in real assets." "I think [gold] could go still higher," Gijsels added. "But indeed, it could be a rocky path." Deutsche Bank's Hseuh said in his note on Friday that much of the trajectory for gold depends on the intentions of the U.S. administration, which he argued remains "unclear." "If their intentions are to stimulate investment in and expand domestic gold refining capacity, then they may well obstruct the ability of foreign gold refiners to meet the standards required for tariff exemption," he said. "Going further, they could even remove the tariff exemption for HTS code 7108.12.10, though this seems unlikely. Either of these actions would risk creating a bifurcated gold market whereby metal circulating amongst buyers and sellers in the US becomes divorced from the volume of metal similarly circulating outside the US."
IOL News
01-08-2025
- Business
- IOL News
South Africa continues to negotiate with the US on tariffs as deadline is pushed back by 7 days
President Cyril Ramaphosa on Friday said ongoing communications between South Africa and US officials have not ceased, adding that the government has submitted a Framework Deal that aims to enhance Image: GCIS President Cyril Ramaphosa has announced that negotiations with the United States will continue over the next week in a move signalling the South African government's commitment to safeguarding its trade interests. This announcement comes in the wake of a decision by the Trump administration to modify the Harmonized Tariff Schedule affecting the tariffs on goods imported to the US economy. The modifications come as South Africa is bracing for the implementation of a 30% import tariff on its exports to the US. These reciprocal tariffs, initially due to take effect on 1 August and part of broader measures affecting multiple trade partners, will now take effect from 12h01 eastern daylight time on 7 August 2025. Notably, all exceptions stipulated in previous US Executive Orders will remain applicable. This means critical sectors such as copper, pharmaceuticals, semiconductors, and energy products will continue to operate under existing agreements, somewhat alleviating potential pressures on these industries. This delay is seen as an opportune moment for both nations to explore avenues for compromise and cooperation, as the impact of these tariffs could have sweeping consequences for South African businesses and the economy. Ramaphosa on Friday said ongoing communications between South Africa and US officials have not ceased, adding that the government has submitted a Framework Deal that aims to enhance mutually beneficial trade and investment relations. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ He said all channels of communication remained open to engage with the US and that the government was finalising a relief package designed to assist companies impacted by export restrictions. 'In the meantime, the government is finalising a package to support companies that are vulnerable to the reciprocal tariffs,' Ramaphosa said. 'The package consists of a number of measures to assist companies, producers and workers affected by the tariffs on SA exports to the US. The details of the measures will be announced in due course.' South Africa exports billions of rands' worth of goods to the US each year, including fruit, vegetables, meat, and wine. These sectors employ thousands of workers, and the 30% tariff will render their products uncompetitive in the American market, placing immense pressure on producers and exporters. Major South African exports to the US include precious stones and metals, motor vehicles, parts and accessories; iron and steel, machinery; aluminium products, ores, organic chemicals, chemical products, nickel products, agricultural products such as citrus fruits, wine, processed foods. Ramaphosa said South Africa and US trade relations were complementary in nature and South African exports did not pose a threat to US industry. He said South Africa's exports to the US contained inputs from the African Continent and contributed to intra-Africa trade. Ramaphosa said South Africa will continue to pursue all diplomatic efforts to safeguard its national interests.
News18
01-08-2025
- Business
- News18
How Much Revenue The US Has Made From Trump's Tariffs, And What's Next In Trade War
Last Updated: US collected $28 billion in tariffs in July, with economists projecting it could rise to $37 billion per month from August. Customs duty revenue crossed $100 billion in fiscal 2025 The US government under Donald Trump is collecting more money than ever from import tariffs, with customs duty revenue crossing $100 billion in fiscal year 2025—more than double what it brought in just five years ago. Treasury and Homeland Security figures suggest the final tally could reach $300 billion by year's end, fuelled by sweeping tariffs imposed on goods from over 100 countries, including India, Brazil, Russia, China and Canada. Customs duties now make up nearly 5% of total federal revenue, up from an average of 1.6% in previous decades. How Much Has Been The Monthly Tariff Intake? July alone saw the US collect a record $28 billion in tariff duties, with economists projecting that number could climb as high as $37 billion per month from August onward, when new rate hikes take effect. The surge is tied directly to the Trump administration's expanding list of tariffs — particularly targeting high-import nations like China, India, Brazil, and Canada. India, Brazil, Canada, and Russia Among Top Targets Among the most affected is India, now facing US import tariffs of 25%, up from 10% just a few months earlier. The hike follows India's continued purchase of discounted Russian oil and what Trump has called 'unfair" duties on US goods. Russia faces indirect pressure through Trump's threat of 100% secondary tariffs on countries purchasing its oil and gas, announced on July 14, unless a Ukraine ceasefire is reached within 50 days. Direct tariffs on Russian goods are limited, as Russia is already subject to Column 2 of the Harmonized Tariff Schedule (HTSUS) alongside Cuba, North Korea, and Belarus, with exemptions for smartphones and electronics granted on April 11. In Brazil, the White House has slapped a 50% tariff on several categories of exports, in part due to political tensions over international alignments. President Luiz Inácio Lula da Silva has vowed to reciprocate with tariffs, and the Brazilian National Congress passed a 'Trade Reciprocity Law" to counter unilateral measures. Canada, too, has seen relations sour — leading to a 35% tariff hike, partially linked to its stance on Palestine and trade imbalances. Tariffs now also apply broadly to goods linked to Russia, including indirect imports via third countries, with some levies reaching 50%. How Much Can Long-Term Revenue Increase? White House estimates suggest the tariffs could generate between $2.6 and $3.9 trillion in revenue over the next decade. Yet think tanks such as Yale's Budget Lab caution that these gains may be offset by lost economic activity, reduced tax revenue, and rising prices. Already, tariffs are estimated to have reduced GDP growth by up to 0.9 percentage points and driven household costs up by an average of $3,800 annually. Legal And Political Challenges Are Mounting While tariffs have delivered fiscal windfalls, they are also drawing legal scrutiny. The US Court of Appeal for the Federal Circuit in Washington DC is reviewing whether Trump's broad use of executive emergency powers to impose tariffs—originally designed for national security threats—is constitutional. If overturned, a significant portion of current tariff income could be at risk. Meanwhile, Trump, the first president to use International Emergency Economic Powers Act (IEEPA), a 1977 law historically used for sanctioning enemies or freezing their assets, had said that the April tariffs were a response to persistent US trade imbalances and declining manufacturing power. He said the tariffs against China, Canada and Mexico were appropriate because those countries were not doing enough to stop illegal fentanyl from crossing US borders, a claim the countries have denied. How Public Is Paying The Price? Despite the sharp rise in revenue, economists agree that most of the cost of these tariffs is borne by American consumers and businesses, not foreign exporters. Dozens of US companies have publicly reported billions in additional costs or lost sales, particularly in retail, auto, and manufacturing sectors. The tariffs have also complicated supply chains and raised uncertainty for global investors, even as they bolster revenue figures for Washington. A new study by Yale University has estimated that Trump's tariff regime will result in an average income loss of $2,400 per household in the short term. The burden is unevenly distributed. While low-income families could lose up to $1,300, wealthier households may see a higher nominal hit (around $5,000) but with less impact on their financial stability, the report said. Another study done at Harvard University's Pricing Lab, who are examining the effects of the 2025 tariff measures in real time using online data from four major US retailers, has found that the price of imported goods into the US and domestic products affected by tariffs have been rising more rapidly in 2025 than domestic goods that are not affected by tariffs, as mentioned by the BBC. What's Next? Tariffs are proving to be one of the most consequential tools in President Trump's economic playbook. While they have added unprecedented sums to the federal treasury, they have also reshaped trade alliances, triggered global market volatility, strained domestic companies, and risked retaliatory action from major economies. The S&P 500 and Nasdaq Composite experienced historic drops in April 2025 following the initial tariff announcements. Retaliatory tariffs from China, Canada, and the European Union, affecting $330 billion in US exports, further complicate the economic picture. The International Monetary Fund (IMF) and Organization for Economic Co-operation and Development (OECD) have downgraded global growth forecasts for 2025, citing US tariffs as a key factor. For US allies like India, the message is clear: Washington's trade strategy has shifted from negotiation to leverage, and nations unwilling to bend may pay the price — both politically and economically. About the Author Shilpy Bisht Shilpy Bisht, Deputy News Editor at News18, writes and edits national, world and business stories. She started off as a print journalist, and then transitioned to online, in her 12 years of experience. Her More Get Latest Updates on Movies, Breaking News On India, World, Live Cricket Scores, And Stock Market Updates. Also Download the News18 App to stay updated! tags : India Exports India US trade tariffs Trade War view comments Location : New Delhi, India, India First Published: August 01, 2025, 09:57 IST News explainers How Much Revenue The US Has Made From Trump's Tariffs, And What's Next In Trade War Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Yahoo
09-07-2025
- Business
- Yahoo
Duties On 2 Styles Of North Face Men's Winter Boots Would Drop Under CBP Proposal
Duties on two styles of closed-toe/closed-heel men's winter boots are slated to get lowered under a U.S. Customs & Border Protection (CBP) reclassification. A proposal for reclassification was listed in a June 25 Customs Bulletin and Decisions notice. CBP is seeking commentary for the proposed change, which has to be received on or before July 25, 2025. The change would revoke a New York letter ruling from November 2023, and become effective 60 days after the June 25 publication date. Once the change is effective, the duty would be lowered to 9 percent from its current rate of 37.5 percent. More from WWD Trump Closes Door on Tariff Trade Talk Extensions: Here's Where Footwear Could Be Hit the Most The North Face to Bring Climb Festival to San Francisco Did Trump's Latest Tariff Move Give Shoe Shoppers A Holiday Reprieve? The original New York letter ruling from November 2023, in response to an October 2023 letter from VF Corp.'s The North Face division, had classified the Vietnam-made men's boots as protective footwear. The November letter stated that the F.O.B. provided by the VF brand was $55 a pair. The two men's boots cover the ankle, but not the knee. While similar in style and construction, the two differ in the types of closure. One boot uses a cinch cord at the topline and the other boot has two fasteners that closes on the side. The NY ruling letter noted that the external uppers are of 88.6 percent rubber or plastics and 11.4 percent textile material, with outer soles that have grips for traction and provide for the attachment of spikes, cleats or crampons for use in climbing or walking on an icy surface. While the boots are well-insulated and water-resistant, they do not incorporate metal toe caps. The CBP has determined that the original NY ruling letter — using the classification for footwear that includes protection against water, oil, grease, chemicals or cold or inclement weather — made an erroneous conclusion. Reclassification will have the boots fall under a provision in the Harmonized Tariff Schedule of the United States that provides for '[o]ther footwear with outer soles and uppers of rubber or plastics: Sports footwear' that's valued at 'over $12/pair.' The CBP reviewed the classification in response to a North Face brand request from February 2024 seeking reconsideration of the the NY ruling letter determination. In the CBP response letter, it noted that North Face indicated that the boots 'are intended to be worn while mountaineering and/or ice climbing [and that they are] not practical for everyday wear, nor are they designed to be worn as typical hiking boots.' In addition, North Face will market the boots as 'high performance footwear designed for adventurous outdoor pursuits including glacier, arctic, and snowshoe expeditions.' The CBP concluded that both North Face boots, the M Pro Winter Reboot and the M Summit Winter Reboot, 'meet the requirements of 'sports footwear' [as both are] designed for a sporting activity.' Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos]
Time Business News
28-06-2025
- Business
- Time Business News
I Trusted Utrade Logistics for My HTS Code Canada Needs – Here's Why
I Trusted Utrade Logistics for My HTS Code Canada Needs – Here's Why. When I first began importing products into Canada, I quickly learned how complex the Harmonized Tariff Schedule (HTS) system could be. Every product needs to be assigned a specific HTS code, which determines how much duty you'll pay and whether your shipment will clear customs without delay. I thought I could handle it on my own, but I quickly encountered problems—confusing classifications, overlapping descriptions, and uncertain responsibilities. One wrong digit in a code can cost you thousands in penalties or hold your shipment for days. That's when I realized I needed professional help. And that's exactly why I turned to Utrade Logistics . From the moment I contacted Utrade Logistics, I knew I was in good hands. They understood my concerns and asked the right questions—about the materials, intended use, country of origin, and packaging of my products. Instead of leaving me to guess or search government databases on my own, they walked me through the process of accurate HTS code Canada . They didn't just guess a code and move on—they provided reasoning and even backed it up with documentation from the Canada Border Services Agency (CBSA) guidelines. That gave me the peace of mind I needed to move forward confidently. Before Utrade, I had experienced delays due to incorrectly classified shipments, leading to extra duties and even one case of a container being held for further inspection. These delays cost me time and money, not to mention the stress. With Utrade handling my HTS classification, those problems disappeared. Their team made sure each product was correctly labeled and documented. I haven't faced a single customs clearance issue since I started working with them. They also made me aware of preferential trade agreements and exemptions I didn't even know existed. That insight saved me more money than I expected—making their service a valuable investment, not an extra expense. One of the things I really appreciated was Utrade's responsiveness and speed. When I had new shipments or last-minute changes, they responded promptly and always delivered the right code in time to meet my schedule. Whether I was shipping electronics, printed packaging, or medical goods, their team handled everything with expert knowledge. They even offered proactive advice about grouping products under a single classification when allowed—helping me simplify customs paperwork and reduce fees. What started as a need for HTS code lookup in Canada turned into a full partnership. Today, Utrade Logistics handles my customs documentation, freight forwarding, and even warehousing support when needed. It's a one-stop shop that saves me from juggling multiple vendors. Having HTS classification services built into a broader logistics workflow made my supply chain run smoother. I don't have to repeat details or re-explain my needs each time—I simply send the product list, and they handle the rest. Accuracy, speed, and clear communication—that's what Utrade Logistics delivers every single time. Their team is easy to reach, highly informed, and always ready with a solution when things change at the last minute. Whether I'm importing one pallet or ten containers, I know they'll get the HTS classification right and ensure full customs compliance. They've earned my trust by consistently getting things right and keeping me informed every step of the way. If you're dealing with HTS code classification for Canada, don't try to do it alone. Working with Utrade Logistics took the confusion out of the process and helped me avoid costly mistakes. Their team saved me time, reduced my duties, and gave me complete confidence in every shipment. For any business importing to Canada, Utrade Logistics is the HTS code partner you want on your side. TIME BUSINESS NEWS
