Trump holds off on critical minerals tariffs

U.S. President Donald Trump has decided to temporarily hold off on imposing tariffs on imports of critical minerals, opting instead to pursue new supply agreements with international partners to safeguard U.S. national security.

In a presidential proclamation issued Wednesday, Trump directed U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick to jointly negotiate agreements with trading partners aimed at reducing America’s dependence on foreign sources of processed critical minerals and their derivative products.

The administration will also explore establishing price floors for critical minerals, a long-standing proposal supported by Western mining firms and policymakers. The idea was discussed this week in Washington during meetings of finance ministers from the G7 and other major economies.

Trump warned that if negotiations do not deliver results, the administration may impose minimum import prices or adopt other measures, though he did not provide specific details.

The announcement follows a months-long national security review launched in April 2025, when Trump signed an executive order directing an investigation into the risks associated with U.S. reliance on imported, processed critical minerals.

The policy shift comes as China, which produces more than half of the 54 minerals classified as critical by the U.S. Geological Survey, continues to tighten export controls amid growing trade tensions with Washington. China also remains the world’s dominant refiner of these materials.

The Trump administration has already taken steps to diversify supply chains. In October, Trump signed an agreement with Australian Prime Minister Anthony Albanese to expand cooperation on critical minerals and rare earths. Australia, home to the world’s fourth-largest rare earth reserves, is positioning itself as a strategic alternative to China, with Lynas Rare Earths currently the only producer of heavy rare earths outside China.

Beyond Australia, the U.S. has secured minerals agreements with Saudi Arabia, Malaysia, Thailand, Japan, and several other countries. The administration has also invested over $1 billion during the past year in key mining and processing firms, including MP Materials and Lithium Americas, to strengthen domestic supply chains and counter China’s dominance.

Markets React

Commodities markets responded swiftly. Silver prices fell nearly 4% to $89.75 an ounce after reaching a record $93.75 earlier in the session. Gold slipped 0.4% to $4,608.67 an ounce.

Several mining and energy companies are now in focus following the policy shift, including USA Rare Earth, Critical Metals, MP Materials, Energy Fuels, Lithium Americas, Cameco, Denison Mines, Uranium Energy, Westwater Resources, and American Battery Technology, among others.

The administration’s strategy underscores Washington’s push to build resilient supply chains for materials essential to clean energy, defense systems, and advanced manufacturing.