Trump’s Takeover Of Canadian Rare Earths Miners Raises Major Concerns

On Friday, U.S. markets took a nosedive as the S&P 500 plunged nearly 3% – its steepest drop in six months. The sell-off came after President Donald Trump threatened "a massive increase of tariffs on Chinese products," citing Beijing's "continuing strict control" over rare earth minerals. Meanwhile, behind the scenes, the Trump administration has quietly been buying stakes in Canadian rare earths miners like Trilogy Metals, MP Materials, and Lithium Americas.

Rare earth elements – those 17 metallic minerals essential for everything from smartphones to fighter jets – have become a flashpoint in global trade. China currently dominates the supply chain, controlling about 80% of global production. Washington's latest moves appear aimed at reducing this dependency, but industry experts warn the approach could backfire.

"This looks less like strategic diversification and more like market manipulation," said Sarah Chen, a commodities analyst at Toronto-based Northern Minerals. "When governments start buying up critical mineral assets, you risk creating artificial scarcity and triggering trade wars."

The market's sharp reaction suggests investors fear an escalation of tensions. Tariffs on Chinese rare earth products could disrupt supply chains for electric vehicle manufacturers and defense contractors, while the administration's Canadian investments signal a more aggressive stance in securing resources. Analysts note similar moves historically led to counter-sanctions from trading partners.

As the rare earth landscape shifts, one thing remains clear: the race to secure these critical minerals is reshaping global trade dynamics. Whether this approach strengthens U.S. security or sparks a new resource conflict will depend on how carefully Washington navigates these geopolitical waters.

For deeper insights into the critical minerals race, read the original reporting at OilPrice.