Shares in U.S. and Canadian mining and mineral companies soared in Monday’s pre-market trading as prices of gold and silver reached new heights. The boost came as investors piled into the safe-haven precious metals after President Donald Trump threatened a 100% tariff on Canada, and amid fears of a possible U.S. government shutdown by month-end.
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As of 8:05 a.m. EST, these stocks rose:
- USA Rare Earth (USAR) — 18% to $29.35
- Americas Gold and Silver (USAS) — 9% to $10.08
- Vizsla Silver Corp. (VZLA) — 8% to $7.16
- First Majestic Silver (AG) — 7% to $27.20
- Hycroft Mining Holding (HYMC) — 6% to $53.60
- Pan American Silver (PAAS) — 7% to $68.80
Why USA Rare Earth Is Seeing a Stronger Rally
However, the rally in USA Rare Earth’s stock also comes from attracting about $1.6 billion in new funding from the U.S. Department of Commerce’s CHIPS for America Program. The initiative is run under the U.S. CHIPS and Science Act of 2022, which seeks to boost domestic production of semiconductors through measures such as subsidies.
Trump Tariff Threat Deepens U.S.-Canada Rift
Over the weekend, President Trump threatened to impose a 100% tariff on Canadian goods if Canada enters a trade deal with China. The warning came as Mark Carney, Canada’s prime minister, earlier in the month agreed to dramatically axe tariffs on Chinese electric vehicles as part of efforts to reset diplomatic ties with China.
However, beyond this development, the tension between Washington and Ottawa has taken a new turn in recent days. At the recently concluded World Economic Forum in Davos, Switzerland, Carney urged “middle powers” — advanced countries such as Canada, Australia, Norway, and Denmark with sufficient economic and military power — to rally together against “greater powers.”
‘Canada Lives Because of the United States’
While Carney did not mention Trump or the U.S., the statement is generally believed to refer to America. This is especially as Trump — before backing down last week — threatened a 10% tariff on several European allies over his ambition to acquire Arctic territory, Greenland.
In addition, in his subsequent speech at the forum, Trump, in an obvious response to Carney, stated that “Canada lives because of the United States.” The president also pulled back his invitation for Canada to join his new Board of Peace.
Another Shutdown?
Meanwhile, fears are mounting over another possible shutdown of the U.S. federal government, even though the longest one only ended in early November. Those concerns grew after Democratic senators threatened to withhold support for the funding package that ended the recent shutdown unless changes were made to homeland security provisions
What Are the Best Mining Stocks to Buy?
The TipRanks Stock Comparison tool provides insight into how the mining and mineral stocks mentioned in this article are currently regarded on Wall Street.
