Trump exempts gold from U.S. tariffs

President Donald Trump said on Monday he was exempting gold bars from tariffs, just days after a Customs and Border protection ruling that gold bullion was subject to the so-called reciprocal tariffs.

On Thursday, the Financial Times first reported that the customs agency had decided that tariffs would apply to one-kilogram and 100-ounce gold bars. It stunned many investors who tend to snap up gold during tumultuous periods in financial markets.

The White House later said it would clarify misinformation about the gold bars without spelling out what it was, and the administration quickly moved to reverse the original decision. "Gold will not be Tariffed!" Trump wrote in a social media post.

The White House did not immediately respond to a request for comment about the timing of the exemption.

Gold futures are at record highs, soaring 35% to almost $3,500 per ounce in the wake of Trump's trade wars. They had fallen 2% on the day as of Monday afternoon, however.

The Swiss government is likely to breathe a sigh of relief after Trump's announcement. Gold bars are widely imported from Switzerland, and many analysts had presumed those would be spared from Trump's tariff blitz until late last week. The bulk of Swiss trade with the U.S. was composed of gold in varying stages of refinement. Surging demand for gold has helped magnify the trade deficit between the two countries.

Switzerland faces a 39% rate under Trump's tariffs that went into effect late last week. It's among the highest in the world.