ISTANBUL
US President Donald Trump on Wednesday told allies and trade partners he would invoke national security powers to curb China’s dominance in critical minerals, warning suppliers to secure diversified US supply chains or face new trade barriers, including tariffs.
The US president stated in a proclamation signed on Wednesday that the US's dependence on essential minerals processed elsewhere is a threat to national security.
Until July 13, 2026, negotiators have precisely 180 days to reach legally binding or enforceable agreements.
In order to "adjust imports" of processed vital minerals and their derivative products, Trump instructed Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer to negotiate new or expanded agreements.
Increasing allied processing capacity, obtaining offtake agreements for US access, investing in non-Chinese facilities, and employing trade-stabilizing instruments like price floors to combat price fluctuations and volatility are some of the strategies.
“Mining a mineral domestically does not safeguard the national security of the United States if the United States remains dependent on a foreign country for the processing of that mineral,” the proclamation said.
The president has the authority to forego additional review and implement "remedial" measures, such as high tariffs, quotas, or mandatory "minimum import prices," if no agreement is achieved by the deadline.
China has considerable influence over commodities like rare earths, graphite, and gallium since it controls over 60% of the world's rare earth mining and 90% of its processing, according to the US Geological Survey (USGS).
The proclamation stated that as of 2024, the US was 100% net-import reliant for 12 critical minerals, and 50% or greater net-import reliant for a further 29 critical minerals.