MP Materials plunges as Trump says U.S. gets rare earth minerals from China in trade deal

[Modern industry depends on mining for the valuable rare-earth, rare earth crystal detail]
Joaquin Corbalan/iStock via Getty Images

MP Materials (NYSE:MP [https://seekingalpha.com/symbol/MP]) -8.2% and USA Rare Earth (NASDAQ:USAR [https://seekingalpha.com/symbol/USAR]) -6.8% in early trading Wednesday, surrendering a week's worth of gains, after President Trump said the U.S. will get magnets and rare earth minerals from China under a new trade deal framwork [https://seekingalpha.com/news/4457082-us-china-agree-on-framework-over-trade-disputes-leaders-nod-pending] and that tariffs on Chinese goods will go to 55%.

"Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!). We are getting a total of 55% tariffs; China is getting 10%. Relationship is excellent!" Trump said on a Truth Social post.

A previous agreement reached in Geneva fell apart over China's continued restrictions on critical mineral exports, and the Trump administration responded with its own export curbs on semiconductor design software, chemicals, and other technology goods to China.

Chinese rare earths magnet producer JL MAG Rare-Earth said Wednesday it had obtained export licences [https://www.reuters.com/world/china/jl-mag-rare-earth-says-it-obtained-export-licenses-rare-earth-products-us-europe-2025-06-11/] for rare earths products including magnets, motor rotors and components to regions including the U.S. and Europe.

Shares of MP Materials (NYSE:MP [https://seekingalpha.com/symbol/MP]) and USA Rare Earth (NASDAQ:USAR [https://seekingalpha.com/symbol/USAR]) have been rising this year as Trump has said the production and stockpiling of rare earths is a priority of his administration, citing national security concerns and a desire to be less reliant on China for the materials.

ETFs: (REMX [https://seekingalpha.com/symbol/REMX]), (XME [https://seekingalpha.com/symbol/XME]), (DBB [https://seekingalpha.com/symbol/DBB]), (PICK [https://seekingalpha.com/symbol/PICK])

MORE ON MP MATERIALS AND USA RARE EARTH

* MP Materials: The Magnetic Opportunity Of U.S. Reindustrialization [https://seekingalpha.com/article/4792036-mp-materials-magnetic-opportunity-us-reindustrialization]
* MP Materials: Onshoring The Rare Earth Supply Chain [https://seekingalpha.com/article/4789889-mp-materials-onshoring-rare-earth-supply-chain]
* USA Rare Earth: Still Early Days For This Neodymium Magnet Producer [https://seekingalpha.com/article/4788232-usa-rare-earth-still-early-days-for-this-neodymium-magnet-producer]