Trump imposes gold tariffs to deter investments in refuge zones
In a surprising move, the U.S. government has imposed tariffs on gold imports, specifically on one-kilogram gold bars. This decision, announced by President Trump in August 2025, has caused immediate disruption in the gold market.
The tariffs, set at 39%, could result in duties of $24 billion, given the recent tariffs on imported Swiss goods. Switzerland, a significant player in global gold trading, is the primary target of these tariffs. The country exported gold worth $61.5 billion to the U.S. in the 12 months up to June.
The tariffs have unsettled major market participants in the large gold bar segment, potentially reducing imports of refined gold from dominant suppliers like Switzerland. This could diminish liquidity and increase prices. The tariffs could also lead to shifts in global gold trade flows and pricing mechanisms.
Stephen Innes of SPI Asset Management views Trump's directive as a "tectonic shift" in the gold market. He sees the tariffs on gold imports as another step in Trump's "America First" policy.
The impacts on the gold market and potential shifts towards cryptocurrencies and stablecoins include increased market disruption and price volatility. The high tariffs raising gold prices and reducing the availability of physical bullion in the U.S. might incentivize investors and traders to consider alternative stores of value like cryptocurrencies and stablecoins. These digital assets offer borderless liquidity and are not directly impacted by import tariffs.
The tariffs may signal broader shifts in U.S. trade and monetary strategies, potentially accelerating the exploration of digital assets by investors seeking to mitigate risks from protectionist trade measures affecting traditional safe havens like gold.
Brazil has turned to the WTO, claiming the U.S.'s trade policy violates central commitments made to the WTO. However, Brazil's chances of success at the WTO are considered limited due to ongoing issues with the dispute settlement system.
The U.S. has also imposed new tariffs on most goods from Japan and the EU, but the tariff for the German automotive industry has not yet been reduced to 15%. The U.S. accuses Brazil of endangering U.S. national security, foreign policy, and economy with its actions.
In summary, Trump's tariffs on large gold bars have disrupted traditional gold markets by elevating prices and adding trading uncertainty, which could drive some investors toward digital alternatives such as cryptocurrencies and stablecoins, although direct evidence of the latter trend is inferred rather than explicitly stated. The potential impacts of these tariffs on the global economy and financial markets remain to be seen.
[1] Source: Gold Tariffs and Their Impact on the Gold Market, Investopedia, August 2025.
- The tariffs on gold imports, as part of President Trump's "America First" policy, could influence investors and traders to consider digital assets like cryptocurrencies and stablecoins as alternatives to traditional gold due to their borderless liquidity and immunity to import tariffs.
- The high tariffs on gold imports could potentially lead to increased market disruption, price volatility, and a shift towards digital assets, such as cryptocurrencies and stablecoins, as investors seek to mitigate risks from protectionist trade measures affecting traditional safe havens like gold.
