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 Protection of Investments
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 substantial 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 businesses and potential trade retaliation from China, sources familiar with private discussions between Washington and foreign officials told the Financial Times.
China’s Dominance in Mineral Markets
The disagreements highlight the challenges in countering China’s decades-long strategic investments in key sectors.
US Response to Cost Concerns
Greer responded to partner concerns about economic costs by stating, “You’re talking about affordability, and that’s precisely why we’re in the situation we’re in,” according to the Financial Times.
Impact on Key Industries
Several sources involved in US discussions with trading partners indicated 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.
Securing Critical Mineral Supply Chains
Ensuring the supply 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.