"At issue: China imposed stricter export controls on critical rare earth minerals that the U.S. technology industry depends on for electronics, robotics, and electric vehicles, which are also critical for the defense industry, per CNBC. The news network also reported China will now require foreign entities to obtain a license to export products that contain rare earths worth 0.1% or more of the goods' value."
"On Friday, shares of U.S. rare earth stocks rose after President Donald Trump accused China of strict export controls and threatened a "massive increase of tariffs on Chinese products" once again-however, the comments ended up triggering a market sell-off. "I will be forced, as President of the United States of America, to financially counter their move," Trump said on Truth Social, his social platform. "There are many other countermeasures that are, likewise, under serious consideration.""
"After Trump announced his plans to raise Beijing's tariffs, a number of rare earth stocks went up: USA Rare Earth surged 19%, Energy Fuels rose 10%, and MP Materials gained 15%, CNBC reported. By the end of the day, those stocks had lost some of those gains, with USA Rare Earth up only 6%, Energy Fuels up just 4%, while MP Materials maintained its position, up 10%."
China imposed stricter export controls on rare earth minerals that underpin electronics, robotics, electric vehicles, and defense supply chains, and will require licenses for exports containing rare earths worth 0.1% or more of product value. President Donald Trump threatened financial countermeasures and a "massive increase of tariffs on Chinese products," citing the controls. Initial market reactions included sharp gains in some U.S. rare earth stocks followed by partial reversals. Broader markets sold off, with major indexes falling and the global cryptocurrency market losing nearly $125 billion, reducing total crypto market capitalization and Bitcoin dominance metrics.
Read at Fast Company
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