USA Rare Earth Inc. (USAR) shares plummeted 11.21% during intraday trading on Wednesday, reflecting a sharp decline in the stock's value.
The sell-off followed news that U.S. Vice President Vance unveiled plans to form a preferential trade bloc for critical minerals with allied countries, proposing coordinated price floors to counter China's dominance in the sector. The policy announcement raised concerns about potential market disruptions and increased regulatory uncertainty for companies in the critical minerals supply chain.
Investors reacted negatively to the proposal, which could introduce adjustable tariffs and reference pricing mechanisms, potentially affecting the profitability and competitive landscape for rare earth producers like USA Rare Earth Inc.