""I'm not going to get ahead of the two leaders who will be meeting in Korea on Thursday, but I can tell you we had a very good two days," Bessent said. "So I would expect that the threat of the 100% [tariff] has gone away, as has the threat of the immediate imposition of the Chinese initiating a worldwide export control regime.""
"The issue at the molten core of the rare earth trade is the fact that China controls the vast majority of rare earth mineral production and refining. By some measures, the Chinese control as much as 70% of rare earth mining, 80% of refining and processing capacity, and more than 90% of the world's supply. That means those minerals are scarce, which drives up prices-and share"
Expectations of a near-term China-U.S. trade deal and resumed soybean purchases reduced the perceived likelihood of 100% tariffs and immediate Chinese export-control measures. Major U.S. indexes rose midday, with the Dow up about 0.5%, the S&P 500 up 1%, and the Nasdaq up 1.6%. Rare earth stocks fell sharply, with MP Materials down more than 9% and USA Rare Earth down roughly 10% intraday. MP Materials shares remain up about 312% year-to-date and USA Rare Earth up roughly 85%. China dominates rare earth mining and refining — roughly 70% of mining, 80% of refining capacity, and over 90% of supply — creating scarcity that drives prices and valuations.
Read at Fast Company
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