White House to clarify gold tariffs after ruling sparked chaos

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The Trump administration suggested it would issue a new policy clarifying that imports of gold bars shouldn’t face tariffs, after a U.S. government agency stunned traders by formally ruling that they’d be subject to duties.

The administration intends to post an executive order in the near future to clarify what it called misinformation about the tariffing of gold and other specialty products, a White House official told Bloomberg in a written statement. The official detailed the plans Friday on condition of anonymity.

Futures prices on New York’s Comex pared gains and the global benchmark for spot prices in London fell after the White House statement. The price differential between the two key trading hubs collapsed below $60 an ounce, after earlier surging to above $100 in response to the initial tariff shock.

The chaos that shook the bullion markets in the past 23 hours came after details emerged of a U.S. Customs and Border Protection ruling that said one-kilogram and 100-ounce gold bars are subject to so-called reciprocal tariffs. The ruling, posted on the agency’s website, came after a Swiss refiner sought clarity on the levies. Such a directive would bring sweeping implications for bullion around the world and could have disrupted the functioning of the U.S. futures contract.

Gold-related equities also quickly dropped after the White House statement, with larger gold mining stocks including Newmont Corp. and Agnico Eagle Mines Ltd. immediately erased earlier gains, as did gold royalty provider Franco-Nevada Corp. and funds like the VanEck Gold Miners ETF.

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Gold has a unique role as a financial asset and global currency, making it different from copper, steel and aluminum — other metals that have been hit by Trump’s tariffs. Shipments were freezing up in response to the decision that gold imports would face U.S. duties, traders said earlier Friday.

A White House order clarifying its position would serve to calm the market chaos caused by fears of a tariff on gold imports.

Trump administration officials have repeatedly vowed the president’s second-term tariffs won’t be marked by exemptions, after a host of exclusions granted his first four years in office were seen as undermining the effectiveness of previous levies.

— With assistance from Geoffrey Morgan and Jack Ryan.