US earth stocks surge amid trade tensions with China
Shares of U.S. rare earth mining companies climbed sharply in premarket trading on Tuesday, building on strong gains from the previous session, News.Az reports, citing CNBC.
The rally followed U.S. President Donald Trump’s warning of imposing 100% tariffs on China in response to Beijing’s stringent export restrictions on critical minerals, further intensifying trade tensions between the two nations.
Critical Metals jumped more than 27% in premarket, USA Rare Earth rallied 10% and MP Materials rose 7%. Shares of Energy Fuels were last seen up 11%, while NioCorp Developments stood nearly 9% higher.
The moves come as investors keep a close eye on the potential for a renewed trade spat between the world’s two largest economies.
Trump on Friday announced the U.S. would impose new tariffs of 100% on imports from China starting from Nov. 1, adding that the White House would also slap export controls on “any and all critical software.”
The U.S. president appeared to water down his rhetoric on Sunday, however, saying the situation with Beijing will “be fine.”
China on Thursday announced a new framework for restricting rare earth exports in a move that was seen as a stark warning to the West — and a reflection of the deepening mistrust between Beijing and Washington.
U.S. rare earth stocks posted bumper gains on Monday. Critical Metals closed the session up more than 55%, while MP Materials rose 21% and USA Rare Earth popped 18%.
China is the undisputed leader of the critical minerals supply chain, producing nearly 70% of the world’s supply of rare earths from mines and processing almost 90%, which means it is importing these materials from other countries and refining them.
Western officials have repeatedly flagged Beijing’s supply chain dominance as a strategic challenge, particularly given that critical mineral demand is expected to grow exponentially, as the clean energy transition picks up pace.
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