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.
Protecting Investments and Controlling Prices
The US aims to establish a minimum price for minerals traded within this group of nations, safeguarding investments in mining and processing.
External producers, such as China, could face high tariffs or other measures to prevent price reductions.
Allied Concerns and Potential Retaliation
The proposal has raised concerns among some allies, who fear increased costs for businesses and potential trade retaliation from China, sources familiar with private discussions between Washington and foreign officials have indicated.
China’s Dominance in Mineral Markets
The disagreements highlight the challenges in countering China’s decades-long strategic investments in key sectors.
Justification for the Fees
“When partners express concerns about the economic costs of levels or pricing mechanisms, I tell them: you’re talking about affordability, and that’s precisely why we’re in the situation we’re in,” Greer told the Financial Times.
Impact on Key Industries
Several sources involved in US discussions with trading partners revealed concerns that protecting mineral prices would increase costs in sectors like defense, automotive, and clean energy.
China’s Strategic Use of Mineral Control
China has dominated the global mining and processing sector for decades, leveraging this position as a strategic tool.
US Prioritization of Mineral Supply Security
Securing supplies of rare earth metals and critical minerals has become a priority for the United States, particularly after China restricted exports of rare earth metals in 2025 using export mechanisms.
