The Trump administration has paused plans for tariffs on critical minerals, choosing instead to pursue overseas supply deals while warning that tougher measures could still follow if negotiations fail.
President Donald Trump has decided not to impose tariffs on rare earths, lithium, and other critical minerals for now, opting instead to pursue overseas supply arrangements.
He has instructed US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick to engage with international partners to secure imports without jeopardising US national security.
The Trump administration has already signed several trade and critical minerals agreements with four Southeast Asian countries—Malaysia, Cambodia, Thailand, and Vietnam—aimed at addressing trade imbalances and diversifying supply chains amid China’s tightening export restrictions on rare earths.
The decision postpones potentially disruptive trade measures at a sensitive moment, as the US Supreme Court continues to weigh the legality of Trump’s existing tariff policies. While the move avoids additional economic strain in the short term, it also acknowledges the country’s heavy dependence on foreign sources for key minerals, a reality that may frustrate domestic mining interests.
Trump said the talks should explore mechanisms such as price floors for critical minerals, an idea supported by Western mining companies and policymakers to reduce extreme price swings. He added that if negotiations fail, his administration could consider imposing minimum import prices or other unspecified actions.
The approach aligns with recommendations from Commerce Secretary Lutnick, who last year conducted a national security review under Section 232 of the Trade Expansion Act. That review concluded that the US is overly reliant on foreign suppliers, lacks a secure supply chain, and faces volatile pricing for critical minerals, conditions that pose serious national security risks.
