Rare earth stocks soar after President Trump says China has the world ‘captive’

Shares of U.S. rare earth mining companies soared on Friday after President Donald Trump accused the Chinese government of keeping the world “captive” with strict export controls and signaled countermeasures against China.

“As President of the United States, I will be forced to counter their moves economically,” Trump said on his social media platform Truth Social.

“One of the policies we’re considering right now is a significant increase in tariffs on Chinese products coming into the United States,” the president said. “There are many other measures that are being seriously considered as well.”

MP material Soaring more than 8%, usa rare earths I’ve progressed about 5%, so energy fuel increased by more than 3%, NioCorp development It rose more than 5%.

China this week imposed stricter export controls on rare earths, some of which are critical minerals that are essential raw materials for U.S. weapons platforms, robotics, electric vehicles, electronics and other applications. China dominates the global supply chain for rare earths, and the United States relies on imports from China.

In July, the U.S. Department of Defense signed an unprecedented deal with MP Materials, the nation’s largest rare earth mining company, to compete with China for domestic rare earth supplies.

China currently requires foreign companies to obtain export permits for products containing rare earths that exceed 0.1% of the product’s value. Export permits will also be required if companies use Chinese extraction, refining or magnet recycling technology.

China imposed the restrictions ahead of President Trump’s scheduled meeting with President Xi Jinping later this month on the sidelines of the Asia-Pacific Economic Cooperation Summit in Seoul, South Korea.

“I was scheduled to meet with President Xi at APEC in South Korea in two weeks, but there seems to be no reason to do so now,” Trump said.