""China has tightened export controls on rare earths and related technologies while barring its citizens from participating in unauthorized mining overseas, adding fresh strains to a sector central to its geopolitical leverage," as noted by CNBC. Making it worse, "Chinese rare earth magnet companies have been facing tighter scrutiny on export license applications since September, sources say, even before Beijing's move last week to expand controls over the critical minerals used in magnets," as noted by Reuters."
"Now, in return, President Trump just threatened China with 100% tariffs starting on November 1 in retaliation for Beijing's export controls on those rare earths. As a result of the back and forth, rare earth metal stocks, like USA Rare Earth ( NASDAQ: USAR), are up another 9% in premarket. MP Materials ( NYSE: MP) is up another 4.5%, or $4.25 a share, in premarket."
Escalating Chinese export restrictions and tighter scrutiny on rare earth-related technologies and licenses have increased geopolitical leverage concerns and strained the sector. The U.S. responded with a presidential threat of 100% tariffs starting November 1 in retaliation for China's controls on rare earths. The tensions have pressured broad market ETFs and driven gains in rare earth metal stocks, including notable premarket rallies for USA Rare Earth and MP Materials. Concurrently, major U.S. banks reported stronger-than-expected third-quarter results, with Wells Fargo, JPMorgan Chase, and Citigroup beating estimates on EPS and revenue across key divisions.
Read at 24/7 Wall St.
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