Key Points
- US President Donald Trump announces on Truth Social that gold bars will not face tariffs, sparking a sharp drop in gold prices globally and on MCX.
- Trump’s statement reverses earlier US Customs and Border Protection notification imposing a 39% tariff on certain gold bullion bars.
- MCX gold prices fall by Rs 1409 (1.38%) following Trump’s announcement, easing a week-long price surge driven by tariff fears.
- US gold futures for August delivery drop over 2%, reflecting relief in bullion markets after tariff uncertainty ends.
- Trump’s move also includes a 90-day tariff extension for China, signaling broader trade policy recalibrations.
New Delhi: On August 11, 2025, US President Donald Trump announced via his social media platform Truth that gold bars would not be subject to tariffs. This declaration came amid confusion generated by a July 31 Customs and Border Protection (CBP) letter that had classified 1-kilogram and 100-ounce gold bullion bars under a tariff code imposing a 39% duty under Trump’s reciprocal tariff regime. These gold bar sizes are key to the futures market and widely traded globally, especially imports from Switzerland.
Following Trump’s clarification that “Gold will not be Tariffed!,” the gold futures price on the New York Mercantile Exchange (NYMEX) for August delivery plummeted by more than 2%. Concurrently, the Multi Commodity Exchange (MCX) in India saw gold prices drop by Rs 1409, or 1.38%. The earlier tariff news had pushed gold prices to record highs due to market fears over supply disruption.
Impact on Prices
- MCX gold price fell from a recent high above Rs 1,01,199 per 10 grams of 999 purity to about Rs 1,00,000 after the tariff exemption announcement.
- US gold futures dropped over 2% to approximately $3,404 per ounce from their all-time highs nearing $3,475.
- Spot gold prices also corrected globally as concerns eased on the potential tariff impact on bullion imports.
Background on Tariff Confusion
The US Customs Department had proposed tariffs on certain gold bars imported mainly from Switzerland, which account for a significant portion of bullion backing futures contracts. This raised alarm in global bullion markets fearing major supply chain disruptions and elevated prices. Traders and analysts awaited clarification, which came with Trump’s unequivocal message to exempt gold from tariffs.
Broader Trade Policy Context
Alongside the gold tariff news, Trump also extended the deadline on tariffs related to China by 90 days, indicating ongoing recalibrations in US trade policy. Market watchers see this as an effort to stabilize trade relations while managing inflation and geopolitical factors.
Expert Reactions
- Ross Norman, independent gold market analyst, called the announcement “an enormous relief,” noting the potential disruption from tariffs could have been “incalculable.”
- Market analysts expect that with tariff uncertainty removed, gold might now react more to inflation data and Federal Reserve interest rate policies rather than trade tensions.
Trump’s clarification ended a week-long market frenzy that had resulted in elevated gold prices due to fears of tariffs on key bullion bars. The MCX gold price corrected sharply in India, reflecting global bullion market stabilization. The decision benefits global gold trade continuity while removing significant uncertainty for investors and industries relying on gold futures and physical imports.
