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 substantial tariffs or other measures to prevent price undercutting.
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 revealed.
China’s Dominance in Mineral Markets
The disagreements highlight the challenges in countering China’s decades-long strategic investments in key sectors.
Dismissing Cost Concerns
Greer responded to partners expressing concerns about the economic costs of price levels or mechanisms by stating they were discussing affordability, which is precisely why the current situation exists.
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.
Strategic Importance of Mineral Supply
Securing supplies of rare earth metals and critical minerals has become a priority for the United States, particularly after China restricted rare earth metal exports in 2025 using export mechanisms.
China’s Mineral Leverage
China has dominated the global mining and processing sector for decades, leveraging this position as a strategic tool.