U.S.-China trade tensions are impacting markets, with Chinese regulators restricting rare earth exports to the U.S. President Trump responded by increasing tariffs on Chinese imports. Shares of MP Materials and USA Rare Earth surged over 20% in recent trading, reflecting increased interest in rare earth stocks.

Chinese regulators banned exports with 0.1% or more value from rare-earth technologies without government approval, raising concerns about demand and boosting prices. Rare earth minerals are crucial for high-tech industries like chipmaking, with China being the top global producer.

President Trump initially retaliated by raising tariffs on Chinese goods to 100%, but later appeared to backtrack, reassuring on Truth Social that the situation with China will be fine. This news has lifted U.S. stocks today, providing relief after Friday’s market concerns.

MP Materials and USA Rare Earth shares have seen significant gains this year, with MP Materials rising nearly 500% and USA Rare Earth tripling in value. The increased volatility in U.S.-China trade relations has led to fluctuations in rare earth stocks, but recent developments have boosted shares of companies producing these essential minerals.

Read more at Yahoo Finance: MP Materials Stock, USA Rare Earth Climb Amid U.S.-China Trade Spat