The European Union and the United States signed an agreement on Friday to coordinate the supply of critical minerals necessary for key industries, including defense.
U.S. Secretary of State Marco Rubio and European Trade Commissioner Maroš Šefčovič signed a memorandum of understanding on a strategic partnership for critical minerals at the State Department in Washington.
Rubio stated that the excessive concentration of these resources and their dominance by a few locations posed “an unacceptable risk.”
Šefčovič echoed the importance of the agreement, saying, “I believe we will be even more strategic together. We will achieve our goals much faster than before. And, of course, we will become stronger together in this very important area.”
Countering China’s Dominance
The pact signifies a rare alignment of the Trump administration with the EU, which it often criticizes while aligning with right-wing populist groups in Europe.
During periods of tension, Beijing has restricted exports of critical minerals needed for the production of semiconductors, electric vehicle batteries, and armament systems.
They will also seek to coordinate subsidies and stocks, establish common standards to facilitate trade in the Western world, and invest jointly in research.
The Trump administration previously called for the creation of a preferential trade zone among allies regarding critical minerals.
Washington also unveiled action plans on critical minerals with Mexico and Japan, as well as a supply chain framework with Australia and other countries.
American Tariffs on Steel
The EU also aims to make more progress in mitigating the effects of U.S. tariffs on steel, said Maroš Šefčovič, noting that the talks were progressing positively.
The bloc seeks to align its approaches with the U.S. regarding third countries in terms of steel trade, he added.
With U.S. Commerce Secretary Howard Lutnick, “we agreed to accelerate this work at a technical level,” Šefčovič told reporters.
However, questions remain in transatlantic trade relations.
Since Donald Trump’s return to the White House last year, European manufacturers have been hit by his steep 50% tariffs on steel and aluminum imports.
Last year, Brussels and Washington reached an agreement setting U.S. tariffs at 15% for most European products, excluding steel and aluminum.
While the Trump administration recently simplified the application of its steel import tariffs, Šefčovič said, “We still have issues with the remaining products listed.”
“It would be very important to have positive movement on this point,” he added.
Šefčovič emphasized that both the United States and the European Union faced overcapacity challenges in the market, highlighting the EU’s recent decision to double tariffs on foreign steel to protect its industry from cheap Chinese exports.
“In a next step, we want to engage with the United States on steel partitioning, aligning our approaches towards third countries,” the European Trade Commissioner stated.
This would establish a “defense mechanism against subsidized steel, against global overcapacities,” he added.
Additional sources – AP, AFP
