In a recent interview with CBS’s “60 Minutes,” US President Trump stated that the United States will end its reliance on Chinese rare earths and critical minerals within 18 months. He announced the initiation of an “emergency action plan” to establish independent supply chains with allies, ensuring both industrial and national security. The President emphasized that China’s ability to threaten the United States and its allies through dominance in critical mineral sectors will soon vanish.
This plan aims to ensure that the United States can meet all industrial and defense needs within “less than two years.” The US has forged new partnerships with Japan, Australia, and the UK to develop self-sufficient and sustainable supplies of rare earths and critical minerals.
“We have initiated an emergency action plan, and within the next year or year and a half, we will have everything we need, no matter what threats we face,” Trump said.
China has long dominated the global rare earth supply chain, controlling approximately 70% of extraction, 90% of processing, and 93% of magnet manufacturing capacity. These critical minerals are widely used in high-tech and defense products such as smartphones, electric vehicles, fighter jets, and missiles.
For years, Beijing has utilized rare earths as a geopolitical tool. As early as 2010, the Chinese Communist Party restricted exports of rare earths to Japan during diplomatic disputes, and in recent years, they have added antimony, germanium, tungsten, and others to export control lists.
In April this year, China further expanded export controls, placing seven rare earth elements and magnets made from three of them on the restriction list. On October 9, China escalated controls again, introducing comprehensive restrictions covering all products containing trace rare earth elements.
Trump criticized these actions as “a threat not just to the United States but to the world,” highlighting US efforts to mobilize democratic countries to jointly address and establish secure, stable critical mineral supply chains.
He predicted that “in another two years, the rare earth issue will truly cease to be a nuisance.”
According to Trump’s disclosure, during the recently held Asia-Pacific Economic Cooperation (APEC) summit in South Korea, he met with Chinese leader Xi Jinping and reached an agreement. The US adjusted some tariffs while Beijing agreed to suspend export controls for one year, along with expanding purchases of US agricultural products like soybeans. Trump stated that these terms will be renegotiated annually.
Following Beijing’s announcement of upgraded rare earth controls, Trump immediately utilized emergency powers to impose 100% tariffs on Chinese goods, prompting them to return to the negotiating table. He believes that tariffs can enhance national security and bring significant wealth to the country.
US Treasury Secretary Scott Bessent on CNN’s “State of the Union” also noted that the rare earth crisis has catalyzed the US and its allies to swiftly establish alternative supply chains. He pointed out that China’s weaponization of rare earths has been planned for two to three decades, with the current government rapidly catching up in the next one to two years.
Bessent highlighted that China’s control of critical minerals is a looming “sword” hanging over the world, leading the US to collaborate with Western and Asian democratic nations, including inviting India, to jointly establish independent supply systems.
He emphasized that the US is not seeking to “decouple” from China but must “de-risk” due to China’s proven unreliability as a partner in many areas.
Since returning to the White House in January, the Trump administration has been focused on rebuilding America’s critical material production capacity by streamlining domestic mining approval processes, investing in new processing plants, and coordinating ally contributions to reduce global reliance on China’s supply.
Bessent also mentioned in an interview with the Financial Times that with the advancement of these measures, China’s ability to utilize rare earths as an economic threat “will completely fail within one to two years.”