Negotiations Chosen Over Tariffs for Critical Minerals, For Now

Jan. 15, 2026
By: Hannah B. Kreinik

President Trump signed a proclamation authorizing the Secretary of Commerce and the U.S. Trade Representative (and other relevant federal agencies, as appropriate) to negotiate agreements with countries that have access to processed critical minerals and derivative products (PCMDP) to mitigate national security risks. This is in lieu of using other Section 232 options (like tariffs).

The proclamation explains that the Secretary of Commerce has investigated and found that the U.S. is reliant on foreign critical mineral supply chains, and that critical minerals are being imported into the U.S. in such quantities as to impair national security. The proclamation also notes that Commerce found that price instability for PCMDPs has impacted domestic manufacturing and mining, therefore limiting the supply of PCMDPs for national defense purposes.

The proclamation itself tasks the Secretary of Commerce and USTR to deal with U.S. trade partners rich in PCMDPs to stabilize supply chains, create price floors, and protect national security risks to the U.S. The proclamation requests a report on the progress of the potential agreements in 180 days (or about mid-July). However, the proclamation does specify that other options, such as Section 232 duties, may be used if agreements are not reached.

The U.S. has previously made similar agreements with Australia, Japan, Malaysia, and Thailand (please see here and here). Diversifying critical mineral supply chains has been an area of interest for the government well before the Trump administration (see our article here). Due to the wide range of industries that use critical minerals, such as the automotive, aerospace, technology, and defense sectors, the commodities are seeing a high variability in pricing and demand. Importers should be prepared to see continuing price changes in the sector, as well as investment in other supply chains that may disrupt or slow critical mineral production. Importers should also note that Section 232 duties may still loom over the sector if U.S. agreements with trade partners fail.

Please reach out to Barnes, Richardson attorneys for further impact on the critical mineral industry.