Trump sets 180-day deadline to counter China's critical minerals dominance

President Donald Trump has issued a 180-day ultimatum to allies and trade partners to negotiate agreements that reduce US reliance on China for processed critical minerals, invoking national security powers to address what he termed a strategic vulnerability. In a proclamation signed Wednesday, Trump directed US trade and commerce officials to secure binding deals that expand allied processing capacity, guarantee US supply access, and apply trade-stabilizing measures—or face potential tariffs, quotas, or minimum import prices after the July 13, 2026 deadline.

National Security Framing of Supply Chain Dependence

The proclamation emphasized that domestic mining alone does not secure national security if processing remains overseas, noting that the US is 100% import-reliant for 12 critical minerals and at least 50% reliant for 29 others. China currently controls an estimated 60% of global rare earth mining and 90% of processing, giving it dominant influence over materials essential for defense, technology, and green energy sectors. The directive reflects an escalated effort to decouple US strategic supply chains from Chinese control.

Negotiation Targets and Expected Measures

Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer have been instructed to pursue agreements focusing on increased allied processing capacity, offtake agreements for US access, investments in non-Chinese facilities, and tools like price floors to mitigate market volatility. If satisfactory deals are not reached within the 180-day window, Trump authorized the implementation of “remedial” trade measures without further review.

Broader Geoeconomic Context

This move intensifies the Trump administration’s use of trade policy as a national security instrument, extending beyond tariffs to actively reshape global material flows. It signals to partners—including Australia, Canada, and European nations—that access to the US market may soon require aligned mineral sourcing strategies. The directive also underscores Washington’s accelerating economic statecraft aimed at countering Beijing’s strategic leverage in key industrial sectors.