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 Trade Barriers
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 and Potential Retaliation
The proposal has raised concerns among some allies, who fear increased costs for industries like defense, automotive, and clean energy, as well as potential trade retaliation from China.
Sources familiar with private discussions between Washington and foreign officials expressed these anxieties.
China’s Dominance in Mineral Markets
The situation highlights the challenges in countering China’s decades-long strategic investments in key sectors, particularly mineral extraction and processing.
Greer responded to concerns about economic costs by stating that the current situation is a result of a focus on cost-effectiveness.
Securing Critical Mineral Supply Chains
Ensuring the supply of rare earth metals and critical minerals has become a priority for the US, particularly after China restricted their export in 2025 using export mechanisms.
China’s dominance in the global mineral sector is seen as a strategic advantage it has been leveraging.
