A US trade representative has informed allies they must pay more for critical minerals sourced outside of China, potentially through a “national security fee.”
US Demand for Higher Payments from Allies
The United States is seeking increased financial contributions from its allies for critical minerals not originating in China, according to a report by the Financial Times.
US trade representative Jamieson Greer stated that allies must be prepared to contribute a “national security fee” for minerals sourced from a proposed group of trading partners, including those in Europe.
Proposed Minimum Pricing and Tariff Concerns
The US aims to establish a minimum price for minerals traded within this group of nations, protecting investments in mining and processing. External producers, such as China, could face high tariffs or other measures to prevent price undercutting.
Allied Concerns Over Costs and Retaliation
The proposal has raised concerns among some allies, who fear increased costs for industries like defense, automotive, and clean energy. There are also worries about potential trade retaliation from China.
China’s Dominance in Mineral Markets
The disagreement highlights the challenges in countering China’s decades-long strategic investments in key sectors, particularly in the global mining and processing of minerals.
US Response to Cost Concerns
Greer responded to partner concerns about economic costs by stating that discussions about affordability are precisely why the current situation exists.
Strategic Importance of Mineral Supply
Securing supplies of rare earth metals and critical minerals has become a priority for the US, particularly after China restricted their export using export mechanisms in 2025.
China’s Use of Mineral Control as Leverage
China has dominated the global mineral mining and processing sector for decades, leveraging this position as a form of economic leverage.
