Something remarkable just happened in the global resource chessboard — and it could turn into President Donald Trump's next ‘America First’ trade. When Beijing tightened its grip on rare earth exports this week, it didn't just rattle global supply chains — it lit a fire under USA Rare Earth Inc (NASDAQ:USAR).
- Track USAR stock here.
The stock surged more than 15% Thursday morning as investors bet that the U.S. will double down on domestic production of critical minerals essential to defense and AI manufacturing.
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China Tightens, America Reacts
China's Commerce Ministry announced fresh restrictions requiring government approval for the export of products containing certain rare earth metals — the same strategic resources used in everything from EV motors to missile guidance systems. Beijing already controls about 85% of global refining capacity and 90% of magnet production, giving it immense leverage in trade disputes.
And with tensions running high again, this move feels like a direct replay of the 2019 trade war — except this time, Washington looks more ready to respond.
Enter USA Rare Earth. The company is building a vertically integrated supply chain on U.S. soil — mining, refining, and magnet manufacturing — all without Chinese inputs. Even though it's still years from profitability and burning through roughly $100 million annually, an export ban from Beijing effectively creates political momentum.
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From Trade War To Tailwind
Trump's team has made no secret of wanting to secure domestic control of rare earths and other critical minerals. If the U.S. government continues its recent pattern of taking stakes in "strategic" assets — as it did in Lithium Americas Corp (NYSE:LAC) and Trilogy Metals Inc (NYSE:TMQ) — USA Rare Earth could be next in line.
Essentially, when China constricts exports, America subsidizes production, and USA Rare Earth sits squarely in the crosshairs of geopolitical necessity.
Investor takeaway: USA Rare Earth is still speculative. For those betting on Trump's America-first policies — and on a fractured global supply chain — this might be a worthwhile play.
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