James got his medal with his first run of 92 points but ultimately couldn't match the silky skills of American Shaun White who snatched the gold with his last run of 97.75.
Japan's Ayumu Hirano was second with 95.25 points.
James qualified second for the final, 1.75 points adrift of No.1 White who took the lead with 96.75.
On Tuesday he didn't use the switch backside double cork 1260, the trick that has caused some consternation because James is the only one who does it and believes he should be scored accordingly.
Elsewhere, history-making Australian Harley Windsor and his figure skating partner Ekaterina Alexandrovskaya have given themselves a chance of making the second stage of competition at the Winter Olympics.
The pair skated a near-clean short program in PyeongChang on Wednesday to score 61.55, landing their throws but brought down with a wobble by Russian born Alexandrovskaya on the second.
To Hidden Citizens' cover of the Rolling Stones classic Paint It Black, they nailed their opening element, a triple twist.
They were visibly delighted when they stepped off the ice at Gangneung Arena.
It's believed a score of 65 and above should earn competitors safe passage to the final 16, which would see them contest the free skate on Thursday.
Crowned world junior champions last year, 21-year-old Windsor and 16-year-old Alexandrovskaya were short of their season-best 66.45.
The second pair to skate, they sit second after the first six of 22 performances, 1.7 points behind the Czech Republic.
But the Australians are ahead of pairs from Israel, Austria, Japan and hosts South Korea, who slipped on their first throw.
Windsor has become Australia's first indigenous Winter Olympian.
His unique story has been the focus of much media attention in PyeongChang.
From modest upbringings in a big western Sydney family, Windsor stumbled across an ice rink a decade ago after getting lost driving with his mother.
