Shares of USA Rare Earth, Inc. (NASDAQ:USAR) are trading higher Monday amid a wave of optimism for rare earth materials companies.

What To Know: Rare earth stocks have been rallying over the past week after China’s Commerce Ministry announced new export controls on all products that include even trace amounts of rare-earth materials sourced in China, which are critical for building technologies like solar panels, electric vehicles and smartphones.

In response to the export cubs on rare earths, President Donald Trump threatened to increase tariffs on China by 100%. China produces over 90% of the world’s processed rare earths.

Broader markets faced heavy selling pressure on Friday in anticipation of increased tariffs. Trump later seemed to walk back his tariff plans in a Truth Social post over the weekend.

“Don't worry about China, it will all be fine! Highly respected President Xi just had a bad moment,” Trump wrote in the post. “He doesn't want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!”

Shares of USA Rare Earth are up more than 20% on Monday, according to Benzinga Pro. The stock may also be trading higher after CEO Barbara Humpton said the Oklahoma-based company has been in recent talks with the Trump administration, according to CNBC.

JPMorgan also announced a 10-year plan on Monday to facilitate, finance and invest in industries critical to national economic security and resiliency. Supply chain and advanced manufacturing was the first focus named, which JPMorgan said includes critical minerals.

“It has become painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing – all of which are essential for our national security,” said Jamie Dimon, chairman and CEO of JPMorgan.

“Our security is predicated on the strength and resiliency of America’s economy. America needs more speed and investment.”

USAR Price Action: Shares of USA Rare Earth were up 21.21% at $39.49 at the time of publication on Monday, according to Benzinga Pro.

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