The U.S., Japan and the European Union are set to announce plans in the coming weeks to lay the foundation for a trade agreement in critical minerals, according to people familiar with the preparations.
The Office of the U.S. Trade Representative, which has led negotiations with Brussels and Tokyo on the framework, will also head talks for a trade deal that is set to include a price floor and tariffs for the materials to counter any market distortions by China, said the people, who spoke on the condition of anonymity.
Global efforts to diversify critical minerals supply chains intensified after Beijing last year imposed sweeping export controls, including on rare earths and critical minerals, in response to President Donald Trump’s so-called liberation day tariffs, which set a 10% levy on nearly all American imports.