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Shares of U.S. rare earth miners rallied in premarket trade on Tuesday, extending sharp gains from the previous session after U.S. President Donald Trump threatened China with 100% tariffs over Beijing’s strict export controls on critical minerals.

Critical Metals jumped more than 38% in premarket, USA Rare Earth rallied 12% and MP Materials rose 9%. Shares of Energy Fuels were last seen up 11.4%, while NioCorp Developments stood nearly 9% higher.

The moves come as investors keep a close eye on the potential for a renewed trade spat between the world’s two largest economies.

Trump on Friday announced the U.S. would impose new tariffs of 100% on imports from China starting from Nov. 1, adding that the White House would also slap export controls on “any and all critical software.”

The U.S. president appeared to water down his rhetoric on Sunday, however, saying the situation with Beijing will “be fine.”

China, for its part, is the undisputed leader of the critical minerals supply chain, producing nearly 70% of the world’s supply of rare earths from mines and processing almost 90%, which means it is importing these materials from other countries and refining them.

Western officials have repeatedly flagged Beijing’s supply chain dominance as a strategic challenge, particularly given that critical mineral demand is expected to grow exponentially, as the clean energy transition picks up pace.

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