Recommendation

Congress should institute a tariff floor to safeguard allied and domestic production of rare earth minerals that are essential for EV batteries, semiconductors, and much more.

Details

China has used subsidies and dumping (pricing goods below international market cost) to gain a global advantage in rare earth minerals, which are essential for producing EV batteries, semiconductors, and much more. Should the United States subsidize domestic production of rare earth minerals, China would likely just temporarily lower its prices in response. So, to ensure U.S. and allied mineral producers will not be undercut by their Chinese competitors, Congress must pass a price floor, or a minimum tariff level on rare earth mineral imports. Ideally, this tariff floor would be taken up by U.S. allies as well. This would assure miners that their investments would not be destroyed by China’s price predation.

Keep reading:

▪ Robert D. Atkinson, et al., “A Techno-Economic Agenda for the Next Administration” (ITIF, June 2024), https://itif.org/publications/2024/06/10/a-techno-economic-agenda-for-the-next-administration/.

Update

President Trump issued a proclamation in January 2026 declaring the administration’s intention to negotiate price floors for critical minerals. Vice President Vance later announced an initiative to push for a trade system involving mineral price floors during a summit the administration held at the State Department with representatives from multiple nations.

Further details:

▪ The White House, “Fact Sheet: President Donald J. Trump Directs Negotiations to Adjust Imports of Processed Critical Minerals and Their Derivative Products into the United States,” January 14, 2026, https://www.whitehouse.gov/fact-sheets/2026/01/fact-sheet-president-donald-j-trump-directs-negotiations-to-adjust-imports-of-processed-critical-minerals-and-their-derivative-products-into-the-united-states/.

▪ Rachel Frazin, “Vance pushes for price floors for mineral trading,” The Hill, February 4, 2026, https://thehill.com/policy/energy-environment/5722520-vance-rare-minerals-state/.