The United States is working with Mexico, the European Union, and Japan to establish minimum prices for critical minerals, the U.S. Trade Representative announced Wednesday.
As part of a scheduled review of the United States-Mexico-Canada Agreement (USMCA) by July 1, the Trump administration is exploring a partnership with Mexico to address vulnerabilities in North American supply chains caused by global market distortions. Trade Representative Jamieson Greer described the initiative as an “action plan” to be implemented within 60 days.
Under the plan, the U.S. and Mexico will examine ways to set price floors for critical mineral imports and explore extending such measures in agreements with other countries, a spokesperson from the Trade Representative’s office said.
Collaboration with the EU and Japan
Separately, the U.S. is engaging with the EU and Japan to develop a strategic partnership on critical minerals, which could also incorporate minimum pricing. The U.S. and the 27-member EU are preparing a memorandum of understanding on securing critical mineral supply chains within the next 30 days.
Greer emphasized that cooperation with the EU and Japan reflects a commitment among the world’s major market-oriented economies to create a “new model for preferential trade” in these essential resources. The partnership will also explore sharing information on mineral stockpiles and coordinating efforts in mining, refining, and processing.
Focus on Coordination and Security
The U.S.-Mexico plan envisions coordinated stockpiling of key minerals, shared regulations for mining and processing, and harmonized trade rules. It also includes collaboration on investment, geological mapping, and rapid responses to supply chain disruptions. The initial focus will be on a select group of critical minerals, with the specific elements to be finalized later.
Reducing Dependence on China
Critical minerals have become central to U.S. trade and industrial strategy, particularly in efforts to reduce reliance on China, which dominates the global supply chain. Last year, Beijing attempted to restrict exports of rare earths—used in everything from military equipment to consumer electronics—during trade disputes with the U.S.
The Trump administration recently established a national critical mineral stockpile and taken stakes in companies including MP Materials, USA Rare Earth, Lithium Americas, and Trilogy Metals. The Pentagon reached a landmark agreement with MP Materials last July that included a price floor and offtake agreement alongside an equity stake. The Commerce Department also announced plans to provide financing to USA Rare Earth in exchange for an equity position under certain conditions.