Citigroup: Expect Silver and Palladium to Face High Tariffs

On Monday, silver was included in the list of 54 key minerals that the United States depends on for imports, and is currently awaiting the results of the review based on Section 232 of the Trade Expansion Act. This section allows for tariffs to be imposed on goods deemed essential to national security. Citigroup predicts that by the time the report is released in October, some metals may face targeted tariffs of up to 50%, either immediately or in stages. Analysts stated, "We expect the potential for rapid development and expansion of domestic production capacity to impact the government's differentiated policies towards different metals and minerals." In addition, the US Department of Commerce initiated an anti-dumping investigation into unwrought palladium from Russia earlier this month. Citigroup's basic expectation is that palladium will eventually be subject to tariffs through this investigation or Section 232 report.