With the latest tariff news, keep an eye on mining stocks, like MP Materials (MP) – especially with the latest tariffs on permanent magnets and other critical minerals.
As noted by The White House:
Tariffs on some steel and aluminum products will jump from a current range of 0% to 7.5% to 25%. According to the Administration, this will help bolster “the U.S. steel industry’s competitiveness as the world’s cleanest major steel producer.”
Tariffs on semiconductors will jump from 25% to 50% by 2025. The tariff rate on electric vehicles will jump from 25% to 100% in 2024. Solar cell tariffs will rise from 25% to 50%.
In addition, “The tariff rate on lithium-ion EV batteries will increase from 7.5%% to 25% in 2024, while the tariff rate on lithium-ion non-EV batteries will increase from 7.5% to 25% in 2026. The tariff rate on battery parts will increase from 7.5% to 25% in 2024. The tariff rate on natural graphite and permanent magnets will increase from zero to 25% in 2026. The tariff rate for certain other critical minerals will increase from zero to 25% in 2024.”
Analysts at D.A. Davidson reiterated a buy rating on the rare earth miner, with a price target of $24 a share. Benchmark analysts also have a buy rating on the MP stock at the moment.