Trump opts against imposing tariffs on rare earths and other critical minerals
Donald Trump, the US President, says he opted for now against imposing tariffs on rare earths, lithium and other critical minerals, and as an alternative ordered his government to try to find supplies from international dealing partners.
The move accedes a decision on duties that could further roil the U.S. economy, especially while the Supreme Court is pondering the legality of Trump’s tariffs. By acknowledging the country is far from being self-reliant for its critical minerals needs, though, it may rankle the domestic mining sector.
According to Trump the talks should promote the use of price floors for critical minerals, a step long sought by Western miners and politicians. G7 finance ministers met in Washington last week to discuss such a step.
Trump reiterated he would consider setting minimum import prices for critical minerals or take other measures, without elaborating. An official report found that the U.S. is too reliant on foreign sources of critical minerals, lacks access to a secure supply chain, and is experiencing unsustainable price volatility for the materials, with all those factors fueling a significant national security vulnerability that could be exploited by foreign actors.
China is a uppermost worldwide producer of more than half of the 54 minerals considered critical by the U.S. Geological Survey, and has been limiting exports in the past year amid its trade dispute with the White House. China is is also a major refiner of critical minerals.
According to Trump 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.
