U.S. rare earth stocks fell on Thursday, with USA Rare Earth (NASDAQ:USAR) down 4%, MP Materials (NYSE:MP) down 5%, and Critical Metals Corp (NASDAQ:CRML) down 2%. The Rare Earth and Strategic Metals ETF REMX also dropped 5%. The market generally believes that expectations of a potential diplomatic thaw between Washington and Beijing have eroded the scarcity premium that has driven up valuations for U.S. domestic rare earths. This follows reports that U.S. President Donald Trump and Chinese leader Xi Jinping might hold a summit in Washington later this month to stabilize relations between the two countries and extend the truce agreement reached last year.