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The move is aimed to counter issues the US might face if it is cut off from minerals that are needed in everything from smartphones to electric car batteries in case of a conflict.
US President Donald Trump speaks at an event at the White House, in Washington, US. (IMAGE: REUTERS)
US President Donald Trump’s administration is drafting an executive order that will allow the stockpiling of deep-sea metals, according to reports by the Financial Times. The report said the step is being taken to counter China’s dominance in battery minerals and rare earth supply chains.
The draft plan suggests that the stockpile would “create large quantities ready and available on US territory to be used in the future”. It says that the deep sea metals will be stockpiled in case of a conflict with China that might constrain imports of metals and rare earths.
The move potentially cut the US off from minerals that are needed in everything from smartphones to electric car batteries.
The Financial Times report said the stockpile is part of a wider effort to accelerate deep-sea mining approvals under US law and boost domestic processing capabilities.
China produces around 90% of the world’s refined rare earths, a group of 17 elements used across the defense, electric vehicle, clean energy and electronics industries. The US imports most of its rare earths, and most come from China.
The Chinese government placed some rare earth elements under export restrictions as part of its response to President Donald Trump’s tariff package last week.
The Trump administration on Friday (local time) exempted smartphones, computers and other electronics from its punishing “reciprocal” tariffs — lessening the cost impact on American consumers for a host of popular high-tech products.
The exemptions, published late Friday in a notice by the US Customs and Border Protection office, cover various electronic goods including smartphones and components entering the United States from China, which is currently subject to a staggering additional 145 percent tariff.
Semiconductors are also excluded from a “baseline” 10 percent tariff on most US trading partners.
Beijing said Friday that its 125 percent tariffs on US goods would take effect on Saturday — almost matching the staggering 145 percent levies imposed by Washington on Chinese goods entering the United States.
- Location :
Washington D.C., United States of America (USA)
