Trump issued a new executive order Friday, removing import tariffs on gold bullion, graphite, tungsten, uranium, and other critical metals, while slapping silicone products with new levies. The directive takes effect Monday, and it follows recommendations from U.S. officials and is tied to the ongoing “national emergency” Trump declared when he first triggered his broad country-level tariff agenda in April. This change comes after a ruling by U.S. Customs and Border Protection caused a wave of panic among gold traders by indicating bullion would be taxed. That triggered confusion across the commodities markets. Trump’s decision also makes it easier for Washington to carry out new trade frameworks with other countries. These include deals Trump signed with the European Union, Japan, and South Korea, which now no longer need individual executive orders to go live. Trump removes tariffs on key metals, targets silicone instead The metals being dropped from tariff lists are all used in tech, energy, and defense supply chains. Tungsten is crucial for industrial tools and military hardware. Graphite is central to electric batteries and aerospace parts. Uranium fuels nuclear reactors. Gold, despite being seen mostly as a reserve asset, plays a role in electronics and is a major safe haven for investors. The White House order says removing these tariffs is necessary to support U.S. manufacturing and protect supply chains. But while Trump is giving relief to those materials, he’s also turning up the heat on other sectors. Silicone products, as well as resin and aluminum hydroxide, are now subject to new reciprocal tariffs. These materials are more widely available and are not seen as vital to national security. By hitting them, Trump aims to increase leverage in trade talks without choking essential supply lines. The new policy also opens the door to exempt other goods the U.S. can’t produce, mine, or grow. That includes specific aircraft parts, generic pharmaceuticals, specialty spices, coffee, and rare metals. Under the updated procedure, the U.S. Trade Representative and the Commerce Department will now have power to roll out trade agreements without waiting for direct orders from Trump. Some pharmaceuticals are also getting relief. Drugs like pseudoephedrine, antibiotics, and other medicines that were caught in a separate trade investigation by Commerce are now being pulled out of the tariff list. Gold jumps after ruling reversal, market bets on rate cuts Gold prices shot up immediately. Spot gold climbed 1.4% to $3,596.55 per ounce by Friday afternoon, after reaching a record high of $3,599.89 earlier in the day. U.S. gold futures for December closed 1.3% higher at $3,653.30. The metal has already surged 37% this year, building on a 27% gain in 2024. The rally is being driven by a weaker dollar, central bank purchases, lower interest rates, and widespread market uncertainty. “Gold makes new highs; bulls are looking at the clearly weakening trend of employment translating into multiple rate cuts,” said Tai Wong, an independent metals trader. “The outlook is undoubtedly bullish for gold as labour concerns override inflation for the short, probably medium term,” he added, but warned that prices are still “too far away from 4,000 unless there is a massive dislocation.” The U.S. labor market is showing signs of strain. August job growth slowed sharply, and the unemployment rate rose to 4.3%. Markets are now expecting a 90% chance of a 25-basis-point rate cut this month and a 10% chance of a 50-basis-point cut. Gold, which doesn’t earn interest, tends to attract more investors when rates are falling and global risks are high. Trump’s ongoing pressure on the Federal Reserve is adding to the volatility. He recently tried to fire Fed Governor Lisa Cook, which raised alarms about the Fed’s independence. Analysts say this kind of interference could push the central bank further toward easing. Even with all the excitement in the market, China and India, the biggest gold buyers, are pulling back. Demand for physical gold dropped this week because of the sky-high prices. Meanwhile, gold reserve data from China’s central bank is due Sunday. Sure it won’t reflect September’s price surge, but traders are watching it closely to see if central bank demand has started to cool. If you're reading this, you’re already ahead. Stay there with our newsletter .
