United States Antimony (UAMY) stock surged 5.21% in intraday trading on Tuesday, reflecting the ongoing volatility in the rare earth minerals market amid re-escalating US-China trade tensions. This movement comes as critical-mineral companies experience significant fluctuations in response to geopolitical developments.
The surge follows a series of events that have heightened concerns over the rare earth minerals supply chain. China's recent move to impose restrictions on the export of rare-earth minerals has prompted a strong reaction from the United States, with former President Trump threatening 100% tariffs. Beijing further escalated tensions by effectively banning Chinese companies from doing business with U.S. subsidiaries of a South Korean shipbuilding giant, citing support for the U.S. government and harm to Chinese firms' interests.
While some rare earth mineral stocks saw gains earlier in the day, the market remains highly volatile. Investors appear to be reassessing the potential impact of these trade tensions on companies like United States Antimony, which could benefit from increased domestic focus on critical mineral production. However, traders should exercise caution, as the sector has shown rapid price swings, with some companies experiencing losses after initial gains. The ongoing uncertainty in US-China relations continues to be a significant factor influencing the performance of rare earth mineral stocks.