Rare earth stocks fall as US Treasury Secretary floats tariff truce to avoid export controls

The news: ASX-listed rare earth producers were among the biggest losers in afternoon trade after US Treasury Secretary Scott Bessent raised the possibility of extending a pause in tariffs on Chinese goods if China walks back plans for strict rare earth export controls.

The numbers: At 2:30pm AEDT, Iluka Resources shares had slipped 8.1% to $8.53 while Lynas Rare Earths’ shares had lowered 5.1% to $20.53.

The context: Rare earth producers have been rallying this week as trade tensions between the US-China mounted after the Chinese Ministry of Commerce announced plans to introduce new export restrictions on products with even trace amounts of Chinese-origin rare earths as well as related technologies.

At a press conference in Washington DC overnight, Bessent said: “Is it possible that we could go to a longer roll in return? Perhaps. But all that’s going to be negotiated in the coming weeks.”