USA Rare Earth Inc. (USAR) stock continued its upward trajectory, soaring 6.02% in Tuesday's trading session. This surge follows Monday's impressive 7.52% gain, as the rare earth sector remains buoyed by escalating US-China tensions and increased investment interest in critical minerals.

The ongoing rally is primarily fueled by China's recent announcement of tightened export controls on rare earth minerals, which has prompted concerns about global supply chain disruptions. In response, U.S. President Donald Trump has threatened retaliatory tariffs of up to 100% on Chinese goods, further intensifying the geopolitical standoff. This situation has investors increasingly looking towards alternative suppliers outside of China, benefiting companies like USA Rare Earth.

Adding to the positive sentiment, JPMorgan Chase's recent announcement of a $1.5 trillion initiative to finance and invest in industries deemed critical to national economic security, including rare earth and critical minerals, continues to bolster investor confidence. Furthermore, USA Rare Earth's CEO Barbara Humpton's revelation of recent talks with the Trump administration has reinforced the company's strategic position in the evolving rare earth market landscape. As geopolitical tensions reshape the industry, USA Rare Earth appears well-positioned to capitalize on the growing demand for non-Chinese sources of these vital resources.