Why MP Materials Corp. (MP) Crashed On Monday

We recently published a list of These 10 Stocks Already Sank in June. In this article, we are going to take a look at where MP Materials Corp. (NYSE:MP) stands against other worst performers on Monday.

MP Materials snapped a three-day winning streak on Monday, shedding 5.92 percent to end at $20.50 apiece as investor sentiment appears to have been dented anew by President Donald Trump’s imposition of a new round of tariffs.

Over the weekend, Trump ordered the imposition of a 50-percent duty on steel and aluminum imports, hours after accusing China of failing to stay true to their promise of mutually reducing levies and trade restrictions for critical minerals.

Heavy machinery at work in a mining facility, excavating the earth for rare earth minerals.

While the tariffs do not directly impact MP Materials Corp. (NYSE:MP), the escalating tensions between the two countries have again dampened negotiation hopes, especially at a time when China was looking into relaxing restrictions on rare earth minerals.

It can be learned that China was one of MP Materials Corp.’s (NYSE:MP) largest revenue sources, as it heavily relied on its Chinese partners to refine rare earth elements for years.

Last month, MP Materials Corp. (NYSE:MP), the US’s only rare earth minerals miner, stopped shipping mines to China for processing after the Chinese government slapped a 125-percent tariff on US imports.

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Disclosure: None. This article is originally published at Insider Monkey.