Trump’s Tariffs: Potential Impact on Gold & Silver

Over the past week, gold prices have remained steady, increasing slightly from USD $2627/oz to $2642/oz. Silver saw moderate gains as well, thanks to strong demand from industries like renewable energy and automotive manufacturing. Growing use of silver in green technologies and a global recovery in manufacturing supported this growth. However, increased silver production from major suppliers like Mexico and Chile has kept supply high, preventing larger price jumps.

Former President Trump’s announcement of new tariffs has reignited trade tensions. A 10% tariff on goods from China and a 25% tariff on imports from Mexico and Canada could disrupt trade, especially in metals like silver, which the U.S. relies heavily on importing. Mexico, the world’s largest silver producer, accounts for 25% of global supply. If tariffs reduce U.S. imports, industrial demand could drop, potentially lowering global silver prices but raising premiums for metal available within the U.S.

While silver could face price changes, other industrial metals like copper have remained stable so far, as markets seem to expect a resolution. However, these tariffs highlight the U.S.’s reliance on regional partners for critical metals like silver and platinum group metals. If disruptions continue, they could alter how metals are traded and priced between regions.

The tariffs signal a shift toward “protectionist” trade policies, emphasizing U.S. self-reliance but risking economic instability and global trade disruption. In the metals market, prices could trend lower globally but rise locally as traders debate whether the tariffs are a short-term bargaining move or a long-term policy shift.