Shares of U.S. rare earth mining companies surged in premarket trading on Tuesday, continuing their steep climb from the previous session. The rally followed U.S. President Donald Trump’s latest warning to China, in which he threatened to impose 100% tariffs in response to Beijing’s tightened export restrictions on key industrial minerals.

Critical Metals saw its stock soar more than 38% in early trading, while USA Rare Earth jumped 12% and MP Materials gained 9%. Shares of Energy Fuels were up 11.4%, and NioCorp Developments advanced nearly 9%, reflecting growing investor enthusiasm toward domestic suppliers of rare earth elements.

The market’s reaction underscored investors’ concerns about the possibility of renewed trade tensions between the United States and China — the world’s two largest economies. On Friday, Trump announced that Washington would introduce a 100% tariff on imports from China beginning November 1. He also stated that new export restrictions would be placed on “any and all critical software,” signaling a potential escalation in trade measures.

However, the president appeared to soften his tone over the weekend, telling reporters on Sunday that the situation with Beijing “will be fine,” hinting at a possible willingness to negotiate.

China remains the dominant force in the global rare earths market, accounting for roughly 70% of global mining output and nearly 90% of the world’s processing capacity. Much of the world’s supply chain depends on Chinese refining facilities, even when raw materials are sourced elsewhere.

Western governments have repeatedly expressed concern over China’s near-monopoly in the critical minerals sector, viewing it as a strategic vulnerability. These materials are essential components for electric vehicles, wind turbines, and other clean energy technologies, and global demand is expected to rise dramatically in the coming years as nations push toward carbon neutrality.

The recent surge in U.S. rare earth stocks highlights both investor optimism and the broader geopolitical stakes surrounding control of the minerals that power the next generation of technology and renewable energy.