US Partners with Japan and EU on Critical Minerals Deal

The United States is coordinating with Japan and the European Union to establish a new trade agreement framework for critical minerals. U.S. Trade Representative Jamieson Greer plans to begin negotiations in April, following a stakeholder comment period ending March 19. The initiative seeks to counter Chinese market distortions and export controls on rare earths by implementing tariffs and a price floor to incentivize investment and prevent undercutting by cheaper exports from Beijing. The Defense Advanced Research Projects Agency is providing the technical expertise to develop this pricing mechanism.

This diplomatic push coincides with broader energy security efforts in the Asia-Pacific region. During the first-ever US-sponsored Indo-Pacific Energy Security Ministerial and Business Forum in Tokyo, Japan and other regional nations are preparing to unveil at least US$30 billion in agreements with US companies. These deals cover purchase commitments for nuclear power, liquefied natural gas, oil, and coal, as well as collaborations on minerals for batteries and jet engines.

These developments precede a March 19 visit to the White House by Japanese Prime Minister Sanae Takaichi and an upcoming trip to Beijing by President Donald Trump. The overarching strategy, driven by the National Energy Dominance Council, aims to diversify supply chains away from China and ensure regional allies have dependable energy sources.