US Government: "Cost Concerns Deepened Reliance on China for Critical Minerals... 'National Security Premium' Needed"

USTR Representative Voices Position in FT Interview

Some Allies Express Negative Views

Concerns Over Inflation, Industry Impact, and Potential Chinese Retaliation

It has been argued that, in order to counter China’s dominance over the critical minerals supply chain, the United States and its allies must be willing to pay higher prices for critical minerals sourced from regions outside of China.

Jamison Greer, United States Trade Representative (USTR), is answering reporters' questions in front of the White House on the 2nd (local time). Photo by AP News Agency

Jamieson Greer, United States Trade Representative (USTR), stated this in an interview with the Financial Times (FT) on April 22 (local time), emphasizing that European and other American allies should be prepared to pay a “national security premium” for these minerals.

Representative Greer pointed out that the West’s dependence on China for critical minerals has resulted from countries’ obsession with cost efficiency. When trade partners express concerns about the economic costs associated with price caps or related mechanisms, he says, “That very focus on cost efficiency is the reason we are in this situation now.”

He further stressed, “There is a premium we must pay, and I call it the ‘national security premium.’ To secure a stable supply chain, all of us must bear that cost.”

The securing of supply chains for rare earth elements and critical minerals has emerged as one of the Trump Administration’s top priorities since China imposed export controls last year. Since the beginning of this year, the United States has urged its allies to introduce ‘price floors’ for key minerals to counter China, seeking to protect investments in mining and processing. At the same time, the U.S. is also considering imposing high tariffs or other trade barriers to prevent China from arbitrarily lowering market prices.

However, according to the FT, some allies have raised concerns about these proposals. Sources familiar with the discussions have noted that such measures could increase company costs and raise the risk of retaliation from China. There are also concerns about the significant burden this could have, as it may impact key industries such as defense, automotive, and green energy. Additionally, fears of inflation caused by the prolonged U.S.-Iran conflict have been identified as another source of concern.

This content was produced with the assistance of AI translation services.