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Trump Addresses Limiting China’s Grip on Critical Minerals

(MENAFN) US President Donald Trump on Wednesday informed allies and trading partners that he plans to employ national security authorities to restrict China’s dominance in critical minerals. He cautioned suppliers to ensure diversified US supply chains or risk facing new trade obstacles, including tariffs.

In a proclamation signed on Wednesday, the president emphasized that the US's reliance on crucial minerals processed abroad poses a threat to national security.

Negotiators now have precisely 180 days—until July 13, 2026—to secure legally binding or enforceable agreements.

Trump directed Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer to negotiate new or expanded agreements in order to "adjust imports" of processed vital minerals and their derivative products.

Strategies outlined include boosting allied processing capacity, securing offtake contracts for US access, investing in non-Chinese facilities, and applying trade-stabilizing tools like price floors to counteract price swings and volatility.

The proclamation stated, “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 president retains the power to bypass additional review and enact "remedial" actions such as steep tariffs, quotas, or mandatory "minimum import prices" if no agreement is finalized by the deadline.

China wields substantial control over commodities including rare earths, graphite, and gallium, as it dominates more than 60% of global rare earth mining and 90% of its processing, according to the US Geological Survey (USGS).

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