The Trump administration will set value flooring throughout a variety of industries to fight market manipulation by China, Treasury Secretary Scott Bessent informed CNBC in an unique interview on Wednesday.
China has pushed international rivals within the uncommon earths trade out of enterprise over the previous twenty years by utilizing its international dominance in refining and processing to slash costs, Bessent mentioned.
“When you’re dealing with a non-market economic system like China, then you must train industrial coverage,” Bessent informed Sara Eisen at CNBC’s “Put money into America discussion board” in Washington, D.C.
“So we will set value flooring and the ahead shopping for to be sure that this does not occur once more and we will do it throughout a variety of industries,” the Treasury Secretary mentioned.
The U.S. additionally must arrange a strategic mineral reserve, Bessent mentioned. JPMorgan Chase is all for working with the Trump administration to arrange such a reserve, he mentioned.
Uncommon earths are used to supply magnets which can be essential inputs in U.S. weapons programs just like the F-35 warplane and Tomahawk cruise missiles. Uncommon earth magnets are additionally important for civilian business purposes like electrical automobiles.
The Trump administration has been working to face up a home uncommon earth provide chain. The Division of Protection struck an unprecedented deal in July with MP Supplies, the most important U.S. uncommon earth miner, that included an fairness stake, a value ground and offtake settlement.
China final week introduced sweeping new restrictions on uncommon earth exports forward of an anticipated assembly between President Xi Jinping and President Donald Trump in South Korea later this month. Trump has threatend to slap China with extra 100% tariffs in response.
The U.S. may take fairness stakes in different firms within the wake of Beijing’s uncommon earth restrictions, Bessent informed CNBC.
“I would not be stunned,” the Treasury Secretary mentioned when requested about extra fairness stakes. “Once we get an announcement like this week with China on the uncommon earths, you notice we now have to be self-sufficient, or we now have to be enough with our allies.”
The Trump administration won’t take stakes in non-strategic industries, Bessent mentioned. “We do need to be very cautious to not overreach,” he mentioned.
Shares of uncommon earth and demanding mineral miners have rallied over the previous a number of periods as buyers speculate on which firms may be future targets for Trump administration industrial coverage.
