Washington: US President Donald Trump on Wednesday informed allies and trade partners of his decision to use national security powers to address China's dominance in critical minerals. He warned suppliers to diversify US supply chains or face new trade barriers, including tariffs. The proclamation signed by Trump emphasized that the US's reliance on essential minerals processed abroad poses a threat to national security.

According to Anadolu Agency, negotiators have until July 13, 2026, precisely 180 days, to establish legally binding agreements. Trump directed Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer to negotiate new or expanded agreements to adjust imports of processed vital minerals and their derivative products. Strategies include increasing allied processing capacity, securing offtake agreements for US access, investing in non-Chinese facilities, and utilizing trade-stabilizing instruments like price floors to counter price fluctuations and volatility.

The proclamation highlighted that domestic mining of minerals does not ensure US national security if processing remains dependent on foreign countries. Should agreements not be reached by the deadline, the president has the authority to implement measures such as high tariffs, quotas, or mandatory "minimum import prices."

China's significant control over commodities like rare earths, graphite, and gallium is noted, with over 60% of the world's rare earth mining and 90% of its processing under its influence, according to the US Geological Survey (USGS). The proclamation also stated that as of 2024, the US was 100% net-import reliant for 12 critical minerals and 50% or greater net-import reliant for an additional 29 critical minerals.