Trump says no critical minerals tariffs for now, will seek overseas supplies

US President Donald Trump said on Wednesday he had opted for now against imposing tariffs on rare earths, lithium and other critical minerals, and instead ordered his administration to seek supplies from international trading partners.

The US Secretary of Commerce and US Trade Representative were ordered to jointly negotiate with trading partners. The negotiation's dealine is set for July 13, providing 180 days to secure binding or enforceable agreements.

The move defers a decision on duties that could further roil the US economy, especially while the floors for critical minerals, a step long sought by Western miners and policymakers. G7 finance ministers and those from other major economies like Australia met in Washington earlier this week to establish such a mechanism, for instance.

If Greer and L minerals minimum prices or “may take other measures,” without elaborating.

Trump is essentially adopting the recommendation by Lutnick, who last April initiated a national security assessment under Section 232 of the Trade Expansion Act of 1962 and submitted his findings to the president in October.

Lutnick’s report concluded that the US is “excessively dependent on foreign sources” of critical minerals, lacks a secure supply chain, and faces “unsustainable price volatility” for these materials, all of which contribute to a “significant national security vulnerability that could be exploited by foreign actors.”

The reason for Trump’s delay in acting on Lutnick’s report until this month remains unclear.

China is the leading global producer of more than half of the 54 minerals the US Geological Survey deems critical, and has been restricting exports over the past year amid its trade conflict with Washington. The country is also a major refiner of critical minerals.

“Mining a mineral domestically does not safeguard the national security of the United States if the United States remains dependent on a a foreign country for the processing of that mineral,” Trump said in the order.

Reuters and staff reporter