The "America First" agreement uses a novel 12-month renegotiation model to maintain "strategic leverage" over Beijing, in exchange for partial tariff relief.
WASHINGTON: In a major move to secure America's most critical supply chains, President Donald J. Trump has finalized a rare and strategic agreement with China. The deal guarantees the U.S. supply of strategic minerals, including the rare earth elements (REEs) that are essential for manufacturing everything from smartphones and electric vehicles to the advanced guidance systems of the F-35 fighter jet.
According to a White House announcement, the agreement will be valid for one year and is subject to annual renegotiation. In exchange, the United States will roll back a portion of its trade tariffs on Beijing.
Confronting a Critical Vulnerability
The agreement directly confronts a severe U.S. national security vulnerability: China's near-total monopoly on the global rare earths market.
Beijing currently controls over 90% of the world's refining capacity for these 17 minerals. This dominance has given China immense leverage, leaving Western nations, including the U.S. military-industrial base, heavily dependent on a strategic rival for their most vital components.
A New "Strategic Leverage" Model
The most notable feature of this deal is its short-term nature. President Trump has reportedly argued that this 1-year, annually-renegotiable model is a "wise strategic move" that breaks from "old, long-term pacts" that did not serve U.S. interests.
According to administration sources, this cyclical approach provides several advantages:
Maintains Leverage: It gives the U.S. a powerful strategic lever, forcing Beijing to "act responsibly" in the global supply chain to ensure the deal is renewed.
Ensures Stability: It provides immediate supply-chain stability for the U.S. defense and tech sectors, which desperately need a steady flow of REEs to maintain production.
Dominant Negotiating Position: By making the deal conditional on an annual review, the U.S. retains the upper hand in all future negotiations.
President Trump has long been vocal on this issue, previously stating: "We cannot trade national security just for cheap prices. We will protect our supply chains with negotiation strength and patriotism."
A "Subscription Model" for Minerals
While some commentators have likened the deal to "being on a subscription plan for our own strategic minerals," experts argue this is a flexible and pragmatic strategy. It acknowledges the current reality of Chinese market control while simultaneously creating a mechanism to manage it.
This approach placing immediate U.S. economic and national security interests first is being hailed by the White House as a quintessential "America First" victory.
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Source: This report is based on information from the White House, Fox News, Reuters, and Bloomberg.
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