Swiss gold refining sector stung by US tariffs

The first casualty of a hefty 39 per cent tariff on Swiss imports into the United States may be gold refining, after it emerged that certain gold bars could face the levy.

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The price of gold on the US futures market hit a record high on Friday after US customs authorities clarified that gold bars weighing either one kilogram or 100 ounces (2.8 kilograms) should be classified as subject to so-called reciprocal tariffs.

The July 31 letter was first reported late Thursday by the Financial Times.

But a White House official told AFP that President Donald Trump's administration plans to “issue an executive order in the near future clarifying misinformation about the tariffing of gold bars and other specialty products”.

It was not immediately clear if this meant the products would therefore be exempt from Trump's “reciprocal” levies, imposed to address what Washington deems as unfair trade deficits.

One-kilo gold bars are the most traded type of bullion on Comex -- the world’s biggest futures market -- and Switzerland is a major supplier of the bars on the physical market.

Expectations had been widespread that gold bars would be classified under a different customs code that excludes them from Trump's countrywide tariffs. Higher “reciprocal” rates took effect Thursday on dozens of economies.