Trump's administration has called on allies to pay more for critical minerals
The U.S. Trade Representative in Donald Trump’s administration stated that allies should pay a higher price for critical minerals that are not imported from China. According to him, Washington seeks to reduce its dependence on Beijing and its dominance in the global market for these resources.
This was stated by U.S. President Donald Trump’s chief trade representative, Jamison Greer, as reported by the FT.
Greer specifically emphasized that American allies must be prepared to pay a “national security premium” for minerals that will be supplied by a proposed group of trading partners, including Europe.
The U.S. wants this “club of countries” to trade minerals at set minimum prices to protect its investments in extraction and processing. The United States may also hit external producers, such as China, with high tariffs or other barriers to prevent price drops.
According to people familiar with private negotiations between Washington and foreign officials, the proposal has already alarmed some allies, who fear that the new scheme will increase costs for businesses and trigger retaliatory trade measures from China.
“When trading partners express concern about the economic cost of price caps or mechanisms, I simply say: what you’re talking about—namely economic efficiency—is the reason why we’re in this situation (dependence on China—ed.),” Greer emphasized.
He views a shift in countries’ stance on business costs as the foundation for the West to break free from its dependence on China for critical minerals.
“We will pay a certain surcharge, which I call the ‘national security premium,’ and we will all pay this surcharge to ensure the security of the supply chain,” Greer noted regarding his message to U.S. allies.
It is noted that China has dominated the global share of extraction and processing of critical minerals for decades and has previously used its control over this sector as a weapon.
According to informed sources, there is concern among Washington’s partners that Greer’s initiative could provoke Beijing into retaliatory measures.
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