President Donald Trump has instructed his administration to initiate negotiations with foreign trading partners to reduce the United States' reliance on imported processed critical minerals. This directive comes as a measure to address national security risks associated with global supply chains, with the administration opting against immediate tariffs on these materials.
Presidential Directive
President Trump directed U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick to lead negotiations. The primary objective is to decrease U.S. dependence on foreign processing of critical minerals such as rare earths, lithium, and cobalt. The administration has chosen to pursue international supply agreements rather than imposing tariffs on these materials.
Rationale and Background
The White House has identified the U.S. reliance on international processing of these materials as a growing vulnerability for the nation's defense, energy, and advanced technology sectors. A national security review, initiated by Secretary Lutnick in April under Section 232 of the Trade Expansion Act of 1962, concluded that the U.S. is overly dependent on foreign critical mineral sources, lacks secure supply chains, and experiences unstable price volatility. Lutnick's report, submitted in October, highlighted these issues as a national security vulnerability.
While the United States possesses significant raw mineral resources, the concentration of processing capacity outside the country, particularly in geopolitically sensitive regions, has been cited as exposing critical industries to potential supply disruptions and coercive trade practices. The directive underscored that domestic mineral extraction alone does not ensure national security if processing remains reliant on foreign nations. Discussions involving officials, including Treasury Secretary Scott Bessent, also identified critical mineral supply security as a priority issue.
Negotiation Objectives and Future Measures
The objective of the negotiations is to adjust critical mineral imports to prevent threats to U.S. national security. President Trump specified promoting the use of price floors for critical minerals within these discussions, a measure reportedly supported by Western miners and policymakers. Should negotiations not yield successful outcomes, President Trump stated he would consider implementing minimum import prices for critical minerals or exploring other unspecified measures. The authority invoked for this action is Section 232 of U.S. trade law, which grants the administration the power to monitor, restrict, or adjust imports deemed detrimental to national security.
Global Context
China is noted as a primary global producer and refiner of many of the 54 minerals classified as critical by the U.S. Geological Survey. China has reportedly reduced exports amidst recent trade disputes with Washington.