Donald Trump's biggest fear! America wants to achieve this by threatening the world
Donald Trump's "America First" policy has once again threatened allies with heavy tariffs. This time, the threat concerns critical minerals, the scarcity of which Trump has identified as the biggest threat.
US President Donald Trump has directed allies and trading partners to reach agreements on supplies of critical minerals and rare earths within 180 days. According to the South China Morning Post, the US has threatened to impose tariffs and trade sanctions if these agreements are not reached within the stipulated time.
In a proclamation, Trump stated that America's dependence on critical minerals processed in foreign countries poses a threat to national security. Critical minerals such as lithium, cobalt, and rare earth elements are essential for advanced manufacturing, defense systems, semiconductor, and clean energy technologies.
Currently, China dominates the processing of these minerals, accounting for over 70 percent of the world's rare earth refining and a significant portion of battery-grade mineral production.
Most important for the auto sector
For the auto sector, this move highlights the need to build a robust supply chain as demand for electric vehicles (EVs) continues to grow. Companies may need to renegotiate contracts, find new sources of minerals, and adjust production strategies to adapt to new trade rules.
While this move has been described as a national security measure, it will impact the entire automobile value chain, from battery manufacturers to car manufacturers. This could impact vehicle prices, production timelines, and long-term investments in electrification.
Set a time for the conversation
Under this directive, US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick have been tasked with negotiating new or expanded agreements on the import of processed minerals and their products.
A deadline of July 13, 2026, has been set for negotiations to reach legally binding agreements. While the declaration does not explicitly state that minerals must be mined and processed outside the conflicting countries, it does emphasize shifting supply chains away from large and unilateral sources.
Trump threatens to impose tariffs
The steps outlined in the announcement include expanding processing capacity in allied countries, entering into long-term supply agreements to ensure US access, encouraging investment in facilities outside China, and trade stabilizing measures such as minimum prices to avoid price fluctuations.
If no agreement is reached within the stipulated timeframe, Trump will have the authority to take tougher measures without further review, including imposing higher tariffs, quotas, or minimum import prices.