The U.S. stock market plummeted by nearly 3% after President Trump threatened to increase tariffs on Chinese products due to their control of rare earths. China announced new export controls for 5 more rare-earth metals, bringing the total to 12, adding tungsten, tellurium, bismuth, indium, and molybdenum to the list.

Trade talks between the U.S. and China have been slow, with China facing a 64.9% effective tariff due to Trump’s tariffs. Despite the stock market turmoil, some sectors are benefiting from Trump’s tariff threats.

Trilogy Metals soared 140% after the U.S. government purchased a 10% stake with warrants to buy an additional 7.5%. The Trump administration reversed a ban on the Ambler Road project in Alaska, aiming to access minerals in the Ambler Mining District.

Ethical concerns arise over the Trilogy Metals takeover, with experts questioning the conflict of interest in the U.S. government having stakes in Canadian companies. Similar investments were made by the Trump administration in Lithium Americas and MP Materials.

MP Materials deal with the Pentagon includes a 15% equity stake, a $150 million loan, and financing for a domestic magnet supply chain. MP shares doubled, up 530% YTD, leading to a re-rating of Western rare earths companies.

Trump administration may invest more in critical minerals to reduce reliance on China. Energy Fuels CEO suggests multiple investments to secure critical minerals supply. White House is open to similar deals like the MP Materials agreement.

Trump considering more investments in critical minerals to reduce dependence on China. Energy Fuels CEO suggests multiple investments to secure critical minerals supply. White House open to similar deals like MP Materials agreement.

Read more at Yahoo Finance: Trump’s Takeover Of Canadian Rare Earths Miners Raises Major Concerns