Gold Price Action Trump Tariffs Effects: Trump China Tariffs

Stay updated on gold price action amid trump tariffs, including trump china tariffs, & how Trump tariff news impacting global markets.

In the trading world, the market reacts quickly to news and major announcements. And the US President Donald Trump is already quite popular in changing the entire financial market dynamics with his statements.

Trump’s recent tariff policies have shaken the entire forex and gold market, impacting diverse assets. The most considerable change it has made is to the gold prices.

Thus, in Beirman Capital’s blog, we decided to study how the Trump Tariff is impacting the gold price action from a long-term perspective. So let’s get started.

What are Tariffs and Why do they impact the market?

Tariffs are the taxes that companies pay to the government for importing goods and services from other countries.

Countries’ Tariff decisions have a significant impact on markets, such as stocks, currencies, and gold. Because it encourages or discourages trade relations.

For Example, if the US increases a 5% Tariff on China’s products, then the companies in the USA will have to pay 5% more for importing the products from China.

In this case, US companies will either import products from alternative countries or use their own products. This will make US products more competitive in the market, positively impacting the US Dollar.

Trump Tariff and Gold Price Action

President Donald Trump is catching the eyeballs due to his Tariff Policies for 2025. In the start of 2025, Trump reintroduced tariffs, a 25% levy on all imports from Canada and Mexico, and a 10% tariff on imports from China.

The main aim behind the decision was to reduce the U.S. trade deficit, boost domestic production, and reduce the dependency on these countries. His tariff policies on imports from various countries, including China, Mexico, and Canada, impacted the entire market. Here is how:

Gold Price Touches All-Time High

On 3rd April 2024 Gold price touched an all-time high, reaching the level of US$3,167.77. This was a reaction to President Trump’s Tariff announcement on Chinese goods.

The Tariff announcement caught investors’ attention on the tension between the US and China. During such a scenario, investors prefer to invest in safe-haven assets like gold, silver, and platinum.

That’s the reason why, after the Trump announcement, gold touched an all-time high. The announcement was immediate without any warning, giving rise to tension amongst investors, and financial assets are starting to react to it.

On the one hand, Gold saw a significant rise, while on the other hand, the US dollar weakened. During this time, investors tend to avoid investing in currencies such as the US dollar.

After Impact

It is true that the Gold price has surged to an all-time high after the tariff announcement. However, the increase was of short duration. The Gold price was then dropped to $3,004.57 within a week.

But then again, it saw a rise and reached $3432 on 6th May 2025. Overall, the news has created volatility, and to date, the safe haven asset has been observing potential changes.

Current Scenario

Today, on 11th June 2025, the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. allowed President Donald Trump’s tariffs to remain in effect on Tuesday.

It means Trump may continue to enforce the tariff on imports from trading partners. The news is all set to impact gold price, and currently the safe haven metal is trending near $3,339

Why the US Tariff Change Impacts Gold Prices

You must be wondering why the Gold price tends to react to the US Tariff changes. Here are the top reasons:

Safe Haven Nature:

Changes in tariffs have an impact on diplomatic relations, giving birth to geopolitical tensions between countries and war-like conditions.

Like the ongoing tariff change, it has an impact on US-China relations. In such a scenario, the asset, such as stocks or currencies, saw a drop. And investors prefer investing in precious metals or gold-backed ETFs.

Supply and Change Disruptions:

As we have studied above, tariff changes impact imports and exports, ultimately disrupting the supply chain. Even the current Trump tariff has disrupted the global supply and slowed down the economy, boosting demand for gold and precious metals.

High Volatility:

As you can see, the Trump Tariff created significant volatility in the trading world. Predicting the market during such scenarios becomes difficult. This leads traders to invest their money in a safe haven asset.

Correlation:

Gold has a strong negative relationship with the US Dollar. And the US trade tariff will have an impact on the US Dollar. A fall in the US dollar results in gold decrease and vice versa.

Thus, during such announcements, traders tend to engage in gold or XAU/USD trades, analyzing their impact. Even in 2025, the US Dollar saw a weakness, which boosted traders’ interest in Gold.

Diversification:

Traders who have already put their money in the asset sensitive to US tariff changes can manage the risk by adding gold to their portfolio.

Investors’ sentiments favor gold during Tariff changes, hence traders tend to spread their capital intp precious metals during over-heating economic scenarios.

Inflation:

Trump’s decision to increase the US tariff may lead to inflation. The rise in import costs makes the goods more expensive, giving rise to inflation. And gold works as an inflation hedge, thus it attracts investors.

Wrapping Up

We have examined gold price action and Trump Tariffs. The news has contributed positively to gold. However, the market conditions keep changing.

So, continuously watching the market and US economic conditions is a must. It will help you to identify both short-term and long-term opportunities. Also, you will get a broader market perspective.

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FAQ

How do Trump tariffs affect gold prices?

On 3rd April 2024 Gold price touched an all-time high, reaching the level of US$3,167.77 after President Trump’s Tariff announcement on Chinese goods.

What tariffs did Trump impose?

At the start of 2025, Trump reintroduced US tariffs, a 25% levy on all imports from Canada and Mexico, and a 10% tariff on imports from China.

Has gold hit a record high above $3300 on safe-haven demand?

Yes, gold has recently seen a rise and reached $3432 on 6th May 2025.

What is pushing gold prices up?

The rise of inflation, the current US and US-China tariff conflict, geopolitical tensions, and economic slowdown are impacting the gold price.