Shares of rare earth miners are up on Oct. 30 after the U.S. and China finalized a trade deal that will see exports to America of the critical metals, minerals and magnets resume.
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Under terms of the deal, the U.S. will lower its overall tariffs on China to 47% from 57% in a one-year deal in exchange for Beijing agreeing to delay by one year its curbs on exports of rare earth metals, minerals and magnets to America.
China has also reportedly agreed to resume buying U.S. soybeans. News that China’s shipments of rare earth minerals will restart has the stocks of leading mining companies up on the day. USA Rare Earth (USAR), MP Materials (MP) and Lynas (LYC) are each trending higher on the morning of Oct. 30.
Uncertainty Removed
Analysts were quick to point out that the U.S.-China trade deal removes uncertainty around rare earth minerals, metals and magnets that are critical components of technologies ranging from smartphones to electric vehicles (EVs).
The deal between the U.S. and China was reached after a high-profile meeting between Chinese leader Xi Jinping and U.S. President Donald Trump on Oct. 30. China had restricted rare earth exports to the U.S. for several months as the two countries engaged in a trade dispute over tariffs.
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