Topline
Shares of U.S. rare earth firms fell Tuesday after surging premarket—as stock indexes including the Dow and S&P 500 fell amid escalating trade tensions between the U.S. and China.
China, the largest exporter of rare earths, has expanded export controls.
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Key Facts
USA Rare Earth plummeted over 7% after markets opened, despite surging in premarket.
Nevada-based MP Materials also dropped quickly after markets opened, falling 1.2% after previously surging 12.9% premarket.
Shares Niocorp Development also fell after markets opened, dropping over 5%.
However, shares of Critical Metals maintained premarket gains, rising about 24% to over $28 per share after open, a day after the stock rose 55.41%.
The Dow was down about 0.6% after markets opened on Tuesday, while the benchmark S&P 500 slumped 0.8% and the Nasdaq dropped 1.3%.
The broader drop in stock futures comes as both the U.S. and China began levying a tit-for-tat port entry fee on ships from each other’s countries—in a move that could further disrupt supply chains.
What Have U.s. Officials Said About The Reignited Trade Tensions?
In an interview with the Financial Times published early on Tuesday, Treasury Secretary Scott Bessent strongly criticized Beijing’s decision to expand export controls on rare earth minerals. Bessent argued the levies were a sign of “how weak” China’s economy was and said: “They want to pull everybody else down with them.” The Treasury Secretary then noted, “They are in the middle of a recession/depression, and they are trying to export their way out of it. The problem is they’re exacerbating their standing in the world.” In an interview with Fox Business on Monday, however, Bessent offered some room for de-escalation, saying President Donald Trump’s threat to impose an additional 100% tariff on Chinese goods “does not have to happen” and “The relationship, despite this announcement last week, is good. Lines of communication have reopened, so we’ll see where it goes.” Bessent also indicated that a planned meeting between Trump and his Chinese counterpart Xi Jinping
What Have Chinese Officials Said About The Trade Tensions?
A spokesperson for China’s commerce ministry told reporters on Tuesday that “the export control measures on rare earths and other related items are a legitimate measure.” The official said the measure is meant to safeguard China’s “own national security and common international security.” The spokesperson then accused the U.S. of abusing export controls, overstating national security concerns and adopting “discriminatory practices against China,” a likely reference to U.S. curbs on advanced semiconductor exports.
Tangent
Starting Tuesday, Beijing began charging a fee of $56 per net ton on U.S. vessels entering Chinese ports and this will rise every year and reach $157 by April 2028. Chinese authorities have said these levies are a retaliation against the Trump administration’s move to impose a similar fee of $50 per net ton on Chinese ships entering U.S. ports starting Tuesday, which will also rise annually every April and go up to $140 per net ton in 2028. U.S. officials announced the fees earlier this year, shortly after President Donald Trump issued the “Restoring America’s Maritime Dominance” executive order.
Source: https://www.forbes.com/sites/zacharyfolk/2025/10/14/rare-earth-stocks-decline-as-us-china-trade-tensions-persist/
