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Rare-Earth Stocks Slide on Reported U.S.–China Framework to Pause Tariffs and Export Curbs

China’s processing dominance paired with U.S. reliance on one mine keeps supply chains exposed despite a tentative pause.

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Workers transport soil containing rare earth elements for export at a port in Lianyungang, Jiangsu province, China, October 31, 2010. REUTERS/Stringer ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. CHINA OUT./File Photo
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Overview

  • Reuters reported a preliminary framework between Washington and Beijing that could pause planned U.S. tariffs on Chinese imports and China’s expanded export controls on critical minerals.
  • The arrangement is expected to be reviewed by President Donald Trump and President Xi Jinping at the APEC summit in Gyeongju, South Korea, later this week.
  • Shares of U.S.-listed miners fell before the bell, with Critical Metals down nearly 8%, Ramaco Resources off 5.7%, NioCorp Developments down 5.4%, and MP Materials, USA Rare Earth, and Trilogy Metals falling more than 6.5%.
  • China processes more than 90% of the world’s rare earths and magnets and recently broadened its control list and oversight of foreign producers, while the United States has one operational mine at Mountain Pass with limited processing capacity.
  • Evidence of strain persists, including a 28.7% month-on-month drop in September rare-earth magnet shipments to the U.S., and experts warn companies using Chinese-made equipment could face loss of maintenance services under tighter controls.