Trump’s Tariffs Hit the World’s #1 Silver Producer – It Starts NOW

Summary

In this video, Smart Silver Stacker discusses the implications of the recent tariffs imposed by the United States on Mexico, Canada, and China, which are major global producers of precious metals like gold and silver. The tariffs have increased the cost of importing these metals, making physical precious metals more valuable in the U.S. The video also explores potential economic risks, including the possibility of a recession and the role tariffs may play in reshoring American manufacturing. Ultimately, gold and silver are positioned as safe havens in times of economic uncertainty, with a likely resurgence in demand due to the trade war and financial crises.

Takeaways

• 😀 The United States has imposed a 25% import tariff on Mexico and Canada, and doubled tariffs on China, affecting the global trade environment.
• 😀 Mexico is the world's top producer of silver, while China leads in gold production and is also a major silver producer. Canada is a significant producer of both.
• 😀 The U.S. imports a substantial portion of its silver, with Mexico and Canada accounting for the largest share of these imports.
• 😀 Due to the tariffs, importing precious metals like silver and gold has become significantly more expensive, potentially raising prices for consumers.
• 😀 With the new tariffs, an ounce of silver from Mexico could cost $39.60 (up from $31.71), and an ounce of gold from Canada could rise to $3,600 (up from $2,915).
• 😀 U.S. stackers of physical precious metals benefit as there are no tariffs on domestic stocks, making their holdings more valuable.
• 😀 Despite stock market declines, the price of gold and silver rose, partially due to the Safe Haven effect, as traders sought safety amidst tariff news.
• 😀 The ongoing trade war could result in retaliatory tariffs, potentially hurting U.S. businesses and increasing the risk of a recession.
• 😀 While the U.S. economy faces a potential recession due to tariffs, massive stimulus actions from the government could lead to long-term inflationary pressure, which is bullish for precious metals.
• 😀 If a recession occurs, gold and silver may initially experience a drop in price, but they are likely to recover quickly as governments respond with stimulus measures like low interest rates and quantitative easing.

Q & A

What significant change did the United States make regarding tariffs on imports from Mexico, Canada, and China?

The United States imposed a 25% import tariff on both Mexico and Canada, while doubling the existing tariffs on China from 10% to 20%.

Why are these tariff changes particularly important for the precious metals market?

Mexico, Canada, and China are the largest producers of gold and silver, so the tariffs significantly affect the availability and cost of these metals, which in turn impacts the precious metals market.

What percentage of U.S. silver imports come from Mexico and Canada?

According to the U.S. Geological Survey (USGS), 44% of U.S. silver imports come from Mexico and 18% come from Canada.

How do the tariffs affect the cost of silver and gold imports?

With a 25% tariff, silver from Mexico would cost $39.60 per ounce (up from $31.71), and gold from Canada would cost over $3600 per ounce (up from $2915).

What are the potential long-term implications of these tariffs on U.S. precious metals prices?

The tariffs make imported metals more expensive, which could increase the value of domestically held physical precious metals in the U.S., as there are no additional tariffs on domestic stockpiles.

How does the rise in tariffs affect the precious metals market in the short term?

The short-term impact includes price increases for silver and gold, which are partly driven by safe-haven buying due to the trade war and the higher cost of imports.

What risks could these tariffs pose to the broader economy and precious metals prices?

The tariffs could lead to a recession, causing a sell-off across multiple asset classes, including gold and silver. However, metals might recover quickly due to the likely stimulus measures from the government.

What role does the U.S. Federal Reserve play in the aftermath of a potential recession caused by these tariffs?

The Federal Reserve is expected to cut interest rates, print more money, and stimulate the economy, which would likely be bullish for gold and silver as a result of increased inflationary pressures.

What are the potential consequences if the trade war escalates further?

If China, Canada, and Mexico retaliate with their own tariffs, it could harm American businesses and potentially lead to a recession, but also increase demand for precious metals as a safe haven.

How might the tariffs influence U.S. manufacturing and demand for silver?

The tariffs are part of a strategy to reshore American manufacturing, which could lead to increased demand for silver, a critical industrial input, if more manufacturing jobs are brought back to the U.S.