PRESIDENT Donald Trump has postponed imposing tariffs on rare earths, lithium and other critical minerals, instead directing his administration to secure supplies through international negotiations, Reuters reported.
The decision comes as the Supreme Court deliberates the legality of Trump’s tariff programme and defers duties that could further disrupt the US economy, though it may frustrate domestic mining interests by acknowledging America’s lack of self-sufficiency, said the newswire.
Reuters said Trump ordered Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick to negotiate with trading partners to ensure critical mineral imports will not threaten to impair the national security of the US.
The talks should promote price floors for critical minerals, a measure long advocated by Western miners and policymakers, Trump said in the order. Finance ministers from the G7 and major economies including Australia discussed such arrangements in Washington this week, said Reuters.
If negotiations fail, Trump said he would consider establishing minimum import prices or “may take other measures”.
The directive follows Lutnick’s recommendation from a Section 232 national security review launched last April. His October report found the US “too reliant on foreign sources” of critical minerals, lacking secure supply chains and experiencing “unsustainable price volatility”, said Reuters.
China produces over half of the 54 minerals deemed critical by the US Geological Survey and has restricted exports during the trade dispute. Trump emphasised that domestic mining alone cannot ensure security if America remains dependent on foreign processing.
