Rare Earth Minerals
What has President Trump said this week?
〰️
What has President Trump said this week? 〰️
1. A “Great Deal”
President Trump expressed optimism ahead of his upcoming meeting with Chinese President Xi Jinping in Busan, South Korea, during the Asia-Pacific Economic Cooperation (APEC) forum, describing the anticipated outcome as a “great deal for both countries.” (Al Jazeera, 2025). The summit is expected to address long-standing disputes over tariffs, rare-earth supply chains, and currency practices, set against ongoing concerns about Taiwan’s securityand China’s growing military presence in the region. Analysts say the administration seeks to secure market access concessions and a framework for industrial cooperation, while maintaining strategic pressure on critical sectors such as semiconductors and defense (Washington Post, 2025).
Taiwan remains a particularly sensitive issue. U.S. officials have cautioned that overly conciliatory language regarding Taiwan’s sovereignty could embolden Beijing or unsettle regional allies. White House aides reportedly fear that unscripted remarks by the president could disrupt the delicate diplomatic balance (NBC News, 2025). The stakes are high: aconstructive outcome could help stabilize global markets and supply chains, while missteps risk reigniting volatility across equities, commodities, and currency markets.
2. Now, Japan
Following its agreement with Australia, the Trump administration signed a new framework with Japan to expand cooperation on critical minerals and rare earth processing (Reuters, 2025). The pact aims to secure long-term supply chains for minerals essential to electric vehicles, defense manufacturing, and advanced electronics, as both nations seek to reduce dependence on China. Under the agreement, the U.S. will support Japanese firms in scaling up mining investments, while Japan will contribute refining technologies and processing expertise (White House, 2025).
The partnership builds on prior collaboration in semiconductor manufacturing and energy transition materials, further aligning the two nations’ economic security strategies. For Washington, it strengthens the Indo-Pacific framework by deepening supply-chain integration with key allies; for Tokyo, it ensures access to critical inputs for its high-tech and automotive sectors (Washington Post, 2025). The deal also opens new opportunities in logistics, infrastructure, and resource extraction, as public-private initiatives accelerate efforts to diversify regional supply chains.
3. Argentina, So Close to the U.S.
Argentina’s election of libertarian President Javier Milei, openly backed by President Trump, has redefined relations between Washington and Buenos Aires (The Guardian, 2025). Milei’s market-oriented reforms and alignment with U.S. policy priorities mark a sharp shift from Argentina’s previous populist governments. His administration is pursuing deregulation, privatization, and expanded openness to U.S. investment, particularly in the energy, mining, and agriculture sectors (New York Times, 2025).
The partnership builds on earlier U.S. economic support packages from Trump’s first term, including stabilization loans and commodity trade agreements, and has been further strengthened by a $20 billion Treasury backstop (Bloomberg, 2025). These moves have benefited U.S. firms active in Argentina, especially in lithium and grain exports (Fortune, 2025).
Still, challenges persist. Argentina is appealing a $16 billion U.S. court judgment tied to the 2012 nationalization of state oil company YPF, after a U.S. federal judge ruled that the country violated shareholder rights by failing to make a tender offer when seizing majority control. The case has become one of the largest sovereign-related awards in U.S. court history and a key test of Argentina’s market credibility. Analysts warn that an unfavorable ruling could complicate Argentina’s return to international markets by reigniting investor concerns over property rights and contract enforcement (Bloomberg, 2025). While the outlook points to closer economic cooperation and stronger capital flows, fiscal fragility, legal risks, and social unrest continue to weigh on investor sentiment. Long-term progress will hinge on credible structural reforms and sustained U.S. engagement in a region marked by political volatility.