Silver prices declined sharply after the U.S. government announced a temporary pause on proposed tariffs targeting imports of critical minerals, including silver. The move signals reduced near-term trade pressure but raises uncertainty over long-term supply strategies.
- Silver dropped 2.3% to $31.42/oz on January 15, 2026
- U.S. suspended proposed tariffs on critical minerals, including silver, for 90 days
- Tariffs previously planned to reach up to 25% on imports from China, Mexico, and Chile
- Silver ETFs experienced $187 million in outflows following the announcement
- Suspension delays but does not eliminate potential future trade restrictions
Spot silver fell 2.3% on January 15, 2026, closing at $31.42 per ounce, marking its steepest single-day drop in three weeks. The decline followed an official announcement by the Department of Commerce confirming a 90-day suspension of proposed Section 301 tariffs on imported silver and other critical minerals sourced from countries including China, Mexico, and Chile. The decision, effective immediately, delays implementation of measures that were expected to impose up to 25% duties on these materials. Market analysts noted the pause reflects ongoing tensions between domestic industrial demand and international trade policy. Silver, used extensively in solar panels, electric vehicles, and electronics, has seen increased demand from U.S. manufacturers seeking secure supply chains. However, the tariff proposal had raised concerns about cost inflation and supply chain disruptions, particularly for renewable energy projects reliant on stable silver inputs. The 90-day suspension allows time for a comprehensive review of national security implications and alternative sourcing strategies. During this period, importers may avoid immediate penalties, potentially easing short-term inventory costs. Nevertheless, the indefinite nature of the review leaves market participants cautious, as future tariffs could still be reinstated with minimal notice. Investors reacted swiftly, with silver-related exchange-traded funds (ETFs) seeing outflows totaling $187 million across major U.S. platforms. Analysts suggest the move may temporarily support broader commodity markets, but long-term volatility remains likely if the administration fails to provide clarity on mineral sourcing policies.