Overview
- U.S. Trade Representative Jamieson Greer told the Financial Times that partners should pay more for critical minerals sourced outside China, calling the added cost a national security premium, and he is drafting details to share with allies.
- The draft framework under discussion would use agreed price floors, government subsidies and purchase agreements, with possible tariffs or other barriers to keep Chinese undercutting from driving prices below levels that sustain allied suppliers.
- The aim is to form a trusted trading bloc so new mining and processing projects in partner countries stay profitable and supply chains for key materials become more reliable.
- Officials in the European Union and Japan have signaled interest, while other allies worry the approach could raise costs for autos, batteries and clean energy and could invite economic retaliation from Beijing.
- China now dominates rare earths and other inputs used in defense systems, wind turbines and electric vehicles, which supporters say is why paying more now could prevent future supply shocks for factories and workers.