Trump’s decision to back down tariffs and ‘seek to negotiate’ on critical minerals welcomed by Australia

Australia has welcomed President Donald Trump’s decision to defer any possible tariffs on critical minerals as he instead orders his administration to seek supplies from trusted international trading partners.

Following a months-long review by the US Commerce Department to determine whether foreign shipments threatened national security, the President revealed he would instead seek to negotiate foreign agreements.

“The Secretary recommended that I negotiate agreements with foreign nations to ensure the United States has adequate critical mineral supplies and to mitigate the supply chain vulnerabilities as quickly as possible,” a Presidential declaration stated.

“The Secretary also suggested that it may be appropriate to impose import restrictions, such as tariffs, if satisfactory agreements are not reached in a timely manner,” his Wednesday statement added.

The move to defer a decision on duties that could have further hit the US economy comes as the Supreme Court deliberates on the legality of other tariffs but is also an acknowledgment the country is far from being self-reliant for its critical minerals.

US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick will “enter into negotiations with trading partners to adjust the imports of (critical minerals) so that such imports will not threaten to impair the national security of the United States.”

President Trump says the negotiations, should promote the use of price floors for critical minerals, a step long sought by Western miners and governments.

China is a top global producer of more than half of the 54 minerals considered critical by the US Geological Survey and is by far the dominant global refiner and processor of the materials.

As China continues to curtail exports as part of its trade dispute with the US, critical minerals were top of the agenda for a meeting of G7 finance ministers in Washington this week which included Treasurer Jim Chalmers.

Federal Resources Minister Madeline King told The West Australian that the Albanese Government welcomed “the continued focus of the Trump Administration to diversify critical mineral supply chains”.

The resources minister argues that Australia is “stepping up to its responsibility to lead on critical minerals globally” and that “trusted partners must work together to counter critical minerals market manipulation and build resilient, transparent supply chains”.

“That is why President Trump and Prime Minister Albanese signed a landmark critical minerals framework late last year, which committed both nations to work together to rapidly diversify global critical minerals supply chains.”

“The Albanese Government will bring new legislation to our Parliament this year to empower the Critical Minerals Strategic Reserve with a range of new financial tools to help bring development-ready critical minerals projects online”.

Ms King said she was continuing to have conversations with the Trump Administration “to ensure that Australia and the US are working closely together – under the framework agreement – to build secure critical minerals supply chains underpinned by stable market prices”.

Last week the Albanese government announced the first minerals to be the focus of the $1.2 billion Strategic Reserve would be antimony, gallium and rare earth elements, which are crucial for clean-energy and high-technology manufacturing as well as advanced military equipment

Tania Constable, CEO of the Minerals Council, also argued that Australia was now a “trusted, market-based supplier of critical minerals and a natural partner for the United States as it looks to strengthen supply chains”.

“Australia’s mining industry will continue to engage constructively with governments to ensure policy settings encourage long-term investment, strengthen supply chain resilience, and recognise the role of market-based producers in delivering secure and sustainable critical minerals that underpin future industries.”