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On Friday, a single post from US President Donald Trump on “Truth Social” triggered a $2 trillion loss in market value, reflecting the sensitivity of the market to trade tensions with China. Trump accused China, which processes about 90% of the world’s rare earth minerals, of exploiting its monopoly to hold the US “captive.”
In response to escalating concerns over rare earth independence, the US government has invested significantly, with a $1 billion acquisition of critical minerals reported by the Defense Logistics Agency, complemented by $7.5 billion allocated in the “One Big Beautiful Bill Act.” Following these moves, stocks in US rare earth companies like Lithium Americas, MP Materials, and Trilogy Metals have surged, with Trilogy Metals experiencing an increase of over 200% in one trading session.
Additionally, JPMorgan Chase announced a decade-long $1.5 trillion initiative aimed at bolstering US economic and national security, focused on supply chains and energy independence, and pledging up to $10 billion of its capital to support these efforts.
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