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 Demands 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 Potential Tariffs
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, as reported by the Financial Times.
Sources familiar with private discussions between Washington and foreign officials expressed these anxieties.
China’s Dominance in Mineral Markets
The disagreements highlight the challenges in countering China’s decades-long strategic investments in key sectors.
Greer Defends the Approach
“When trading partners express concerns about the economic costs of levels or pricing mechanisms, I respond to 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 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.
