Why silver tanked when Trump delayed critical mineral tariffs

On January 15, 2026, silver was coming off a record high near $93.75 an ounce. Within hours of President Trump deciding not to put tariffs on critical minerals, it had dropped as much as 7–8%. Here’s what happened, and why a tariff that didn’t happen hit silver so hard.

What Trump decided

Silver had been added to the US list of critical minerals in late 2025, and markets had been bracing for import tariffs on it. Instead, the White House held off. According to reports at the time:

• There would be no new tariffs on critical mineral imports for now, including silver and platinum.
• The administration would pursue bilateral supply deals instead, and floated price floors to support US production.
• Officials were given about 180 days to report back, and tariffs weren’t ruled out if talks failed.
• Separately, a 25% tariff was put on certain advanced computing chips.

How silver reacted

Silver had rallied more than 20% in the four sessions before the decision. When the news landed, it fell as much as 7.3% by one account, and 8% to about $86.25 by another, in early trading. It then recovered to around $90 later in the day.

Other metals fell with it. Platinum dropped about 6% before recovering part of the loss, copper fell about 3% from a record, and gold, also near a record above $4,600, slipped about 1.5%.

Why “no tariff” sank the price

The tariff threat had been pushing silver up. Traders and manufacturers in the US had been buying silver and shipping it into New York warehouses ahead of any tariff, to avoid paying it later. That pulled metal out of London and other markets, tightened supply, and helped drive a squeeze in late 2025.

Once the tariff was off the table, that reason to stockpile disappeared. Some of the premium priced in for a tariff came straight out, and traders who had piled into a fast rally took profits at the same time. Silver stocks in New York warehouses were already falling from their peak in the weeks before.

Analysts were split on what came next. StoneX’s Rhona O’Connell said the immediate heat might be off silver, but that tight trading conditions were unlikely to ease quickly. TD Securities’ Daniel Ghali said the decision suggested the administration would take a more surgical approach to future decisions.

Lessons for traders

• Markets trade the expectation. A tariff that was expected and then didn’t come moved prices as much as one that did. What matters is the surprise.
• Parabolic rallies are fragile. After a 20% run in four days, it takes very little news to set off a sharp drop.
• Policy headlines hit fast. The move happened within minutes of the news. A stop loss and a position size you can live with matter more than predicting the headline.
• Watch the plumbing. Warehouse stocks and the gap between New York and London prices showed the tariff trade building up, and unwinding.

Sources

• Bloomberg via Yahoo Finance: Silver falls after Trump holds off on critical mineral tariffs
• BullionVault: Silver sinks, rebounds to $90 as critical minerals skip Trump’s tariffs
• FXStreet: Trump’s pause on critical mineral tariffs sparks silver pullback
• MINING.COM: Silver price falls from record as US holds off on critical minerals tariff