The United States announced on Wednesday that it will work with Japan and European countries to develop an action plan for securing critical minerals supplies, amid concerns over potential Chinese export restrictions on rare earths. The initiative seeks to establish a trade bloc with allies to stabilize procurement. The U.S. Trade Representative's office indicated exploration of a plurilateral trade initiative with like-minded partners.
In Washington on February 4, the United States, Japan, and the European Union announced a partnership to strengthen critical minerals supply chains. The move responds to concerns that Chinese export curbs on rare earths could disrupt supplies, with the Trump administration seeking to build a trade bloc with allies for stable procurement.
According to a statement from the Office of the U.S. Trade Representative, the U.S., EU, and Japan intend to develop an action plan and "explore a plurilateral trade initiative with like-minded partners on trade in critical minerals." The countries will identify areas of cooperation to diversify procurement sources.
Washington plans to conclude a memorandum of understanding with the EU within 30 days to enhance supply chain security. The Trump administration proposes a trade bloc with price floors reflecting market values to counter China's low-cost supplies subsidized by its government.
On the same day, the U.S. hosted a ministerial meeting with 55 countries, including Japan and EU members, to discuss bolstering supply chains. U.S. Vice President JD Vance stated, "We want to eliminate that problem of people flooding into our markets with cheap critical minerals to undercut our domestic manufacturers."
Secretary of State Marco Rubio urged ending reliance on China, warning that dependence could be used by Beijing as "a tool of leverage in geopolitics."
Japanese State Minister for Foreign Affairs Iwao Horii emphasized multilateral cooperation, saying, "We have come to understand that we are in the same boat, as any supply chain disruption would bring significant impact on the global economy."
The U.S. government plans to invest approximately $12 billion to begin stockpiling critical minerals for the private sector, ensuring stable procurement. Critical minerals, including rare earth metals, are essential for producing smartphones, fighter jets, and electric cars, where China's dominant role raises vulnerabilities.
