U.S. Moves to Build Allied Critical Minerals Bloc to Counter China

by Emmitt Barry, Worthy News Washington D.C. Bureau Chief

(Worthy News) – The United States has agreed to work with Japan, Mexico and the European Union to secure supply chains for critical minerals vital to defense, energy and advanced manufacturing, the Trump administration announced Wednesday.

The initiative advances Donald Trump’s push to blunt China’s dominance in rare earths and other strategic materials. Under the proposed agreements, partner nations will coordinate to identify priority minerals and jointly support mining, refining, processing and recycling projects, U.S. officials said.

China currently controls roughly 90% of global rare earth processing capacity, according to the International Energy Agency, giving Beijing leverage over industries ranging from automaking to advanced weapons systems. While a trade detente reached last October eased some export restrictions, U.S. officials say China’s controls remain tighter than before.

Under the plan, the U.S., Japan and the EU will finalize a memorandum of understanding within 30 days to back allied projects, while the U.S. and Mexico will implement a similar action plan within 60 days. U.S. Trade Representative Jamieson Greer called the move “a new paradigm for preferential trade in critical minerals.”

Vice President JD Vance said the administration aims to establish allied “preferential trade zones” with price floors enforced by tariffs on non-members, preventing China from flooding markets with below-cost minerals to undercut competitors. Secretary of State Marco Rubio said the effort is focused on moving from discussion to action.

The announcement follows Trump’s unveiling of Project Vault, a strategic stockpile backed by a $10 billion loan from the Export-Import Bank of the United States and $1.67 billion in private capital, alongside direct federal investments in producers such as USA Rare Earth. Officials say the combined strategy will strengthen Western supply chains and reduce long-term reliance on China.

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