President Donald Trump loves gold – and he loves tariffs – but on Monday he indicated he loves gold more, saying that gold bars would not be subject to tariffs.
The move earned applause from some of Trump’s supporters online and also calmed global bullion markets after a confusing ruling was made by Customs and Border Protection last week.
The CBP issued an order that said 1-kilogram and 100-ounce gold bars – two standard weights – from Switzerland would be subject to Trump’s 39 percent tariff on the European nation.
Wall Street largely thought gold bars would be exempt.
Switzerland, which is not a part of the European Union – which inked a trade deal with Trump late last month – was subject to one of the highest tariff rates in the world.
CPB’s order sent gold markets into turmoil, with the White House saying Friday afternoon that the president would sign an executive order clearing things up, according to CNN.
On Monday, Trump used Truth Social to set the record straight.
‘Gold will not be Tariffed!’ he exclaimed.
President Donald Trump clarified on Monday that gold bars would be exempt from tariffs after Customs and Border Patrol issued an order that said the 39 percent tariff on Swiss imports would be in effect
Gold bars coming into the United States are largely imported from Switzerland, which is not part of the European Union and thus subject to a 39 percent tariff – one of the highest in the world. On Monday, Trump clarified that gold bars are exempt
An executive order is expected to follow, but as of Monday evening, text of such an order had yet to be made public.
Gold has seen a 31 percent upswing this year as it’s a place where investors have parked money due to trade uncertainty.
Republicans, especially those who are more libertarian-leaning, have traditionally been drawn to gold investment, as they’re less trusting of government institutions.
Financial disclosure from last year, when Trump was a candidate, showed the president himself had invested in up to $250,000 in gold bars.
First lady Melania Trump sells gold necklaces on her website – but jewelry differs from the investment product.
Since coming into office for his second term, Trump has roiled markets with tariff threats.
He originally labeled April 2 ‘Liberation Day’ and announced reciprocal tariffs with different rates applied to countries around the globe.
Since then, the U.S. has signed a number of trade agreements, which has brought those tariffs down, but last week a number of tariffs – including on Switzerland – have gone into effect.
On Monday, Trump also announced that he was giving China another 90-day tariff extension to get to a deal.
In April, China and the United States hit each other with massive tariffs – including a 245 percent tariff on Chinese goods – but have since started negotiations, with the U.S. currently subjecting Chinese imports to the 10 percent baseline tariff, plus another 20 percent.
The new deadline will allow negotiations to go into early November.
