From a broader economic perspective tariffs are generally undesirable, but try telling that to investors holding two small-cap ASX mining shares rocketing today on China tariff news.
The soaring junior ASX miners in question are Tungsten Mining NL (ASX: TGN) and EQ Resources Ltd (ASX: EQR).
Tungsten Mining shares closed yesterday trading for 8.8 cents. In earlier trade, shares were just changing hands for 14.5 cents apiece, up 64.8%. After some like profit-taking, shares are currently trading for 11.5 cents each, up 30.7%.
EQ Resources is also having a banner day. The small-cap ASX mining share is up 46.4% at the time of writing, trading for 4.1 cents a share.
For some context, the All Ordinaries Index (ASX: XAO) is up 0.7% at this same time.
Here's why shareholders have US President Donald Trump and Chinese President Xi Jinping to thank.
Aussie miners could fill the China tariff void
While Trump put new tariffs on Canada and Mexico on hold for a month to pursue negotiations, a fresh round of tariffs on China was enacted on Tuesday.
China wasted no time in responding, slapping targeted retaliatory tariffs on US energy imports, vehicles, farm equipment, clothing, and big tech.
Of relevance to the two rocketing ASX mining shares, China also implemented export restrictions on tungsten, tellurium, molybdenum, and ruthenium, crucial elements for various military technologies and the clean energy transition.
With China responsible for roughly 80% of the global tungsten supply, investors are turning their eyes to Australia's EQ Resources and Tungsten Mining as alternative producers of the critical metals.
Commenting on the impact of China's export restrictions on tungsten, Luke Adriaans, research analyst at Project Blue, said (quoted by Bloomberg), "The recent announcement is surprising. The industries most likely to be affected include the defence sector, where tungsten is a crucial material for munitions manufacturing."
Enter the small-cap ASX mining shares
While EQ Resources and Tungsten Mining won't be able to fill the entire gap left by China's export restrictions on tungsten, both ASX mining shares have been ramping up their production and exploration efforts.
At its quarterly results for the three months to 31 December (Q2 FY2025), EQR reported producing 42,292 metric ton units (mtu) of tungsten concentrate, or 422.9 tonnes. The 2.6 million total tonnes mined over the quarter reflected a 4% increase in total tonnes mined.
As for Tungsten Mining, the small-cap ASX mining share recently reported on numerous high-grade tungsten mineralisation intercepts from the ongoing drill campaign at its Hatches Creek project in the Northern Territory.
Tungsten Mining chairman Gary Lyons noted:
TGN now has rights to explore all minerals on the Mt Mulgine tenements including gold and other minerals beyond tungsten and molybdenum following the acquisition of Mt Mulgine Project tenements.
The Hatches Creek Project is now 100% owned by TGN and we have a maiden Mineral Resource Estimate underway for Hatches Creek following the successful drilling program. We are driving these exciting projects forward.
