Stock Track | USA Rare Earth Plunges 10.05% in Pre-Market as Trump Administration Steps Back from Critical Mineral Price Floors

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USA Rare Earth Inc. (USAR) experienced a significant pre-market plunge of 10.05% on Thursday, as the broader sector of rare earth and critical minerals companies saw sharp declines.

The sell-off followed multiple reports indicating a major policy shift from the Trump administration, which is stepping back from plans to guarantee minimum prices (price floors) for U.S. critical minerals projects. This move marks a reversal from previous commitments and suggests reduced government support for stabilizing revenue in the sector.

Industry executives have long viewed price floors as a crucial tool to compete with China's state-backed producers. The administration's new stance, communicated at a closed-door meeting earlier this month, indicates that future projects will need to prove financial independence without such government backstops, casting doubt on the economic viability of investments for companies like USA Rare Earth.

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