The US government will set floor prices for some industries.
US Treasury Secretary Scott Bessent said the Trump administration plans to impose floor prices across a range of industries to combat market manipulation.
China has shut down its competitors in the rare earth industry over the past two decades by driving down prices through its dominance in refining and processing, Mr. Bessent said. In response, the United States will set floor prices and advance purchase commitments to prevent this from happening in the future.
In addition, the establishment of a strategic mineral reserve is also being discussed and JPMorgan Chase is considering cooperation in building this reserve.
Rare earths, used in weapons systems like the F-35 fighter jet and Tomahawk missiles, are also needed in commercial sectors like electric vehicles. The Trump administration is trying to develop a domestic rare earth supply chain. In July, the Defense Department reached an unprecedented deal with MP Materials, the largest U.S. rare earth miner, that includes a stake, a floor price, and an offtake agreement.
China recently announced restrictions on rare earth exports just before President Xi Jinping and President Trump are scheduled to meet on the sidelines of the Asia- Pacific Economic Cooperation (APEC) Summit in South Korea in late October 2025, and Mr. Trump is warning of additional tariffs of 100% in response.
Secretary Bessent did not rule out the possibility that the US could take stakes in companies following restrictions from China, but stressed that the US would only take stakes in strategic industries to ensure self-sufficiency or cooperation with allies. Shares of rare earth mining companies have surged on speculation about President Trump’s new industrial policy. The US government will be careful not to overstep its authority when considering industrial stakes.
Source: https://vtv.vn/my-co-the-ap-gia-san-voi-mot-so-nganh-chien-luoc-100251017094557908.htm
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