The US is rallying allies to establish a trade protection zone, intending to use tariffs to set a price floor for rare earth elements.

On Wednesday, US Vice President Pence announced a new initiative aimed at stabilizing the critical rare earth market prices, and stated that they would use tariffs, a common tool employed by the Trump administration, to achieve this goal. Pence revealed the plan during a speech at the US Department of State, stating that the US plans to create a protected trade zone that is "protected from external shocks and has mandatory price floors," and to attract as many countries as possible to join. He emphasized that this move will create favorable conditions for private mining companies to increase investment in rare earth extraction minerals which are considered the "cornerstone of the modern economy." Pence said, "These reference prices will be supported by adjustable tariffs, forming a price floor to ensure pricing rationality." Intense action in the rare earth sector this week Pence's statement on Wednesday is the latest action by the US government this week in relation to rare earth issues. On Monday, Trump announced the launch of the "Exchequer Plan," planning to establish a specific rare earth reserve in the US through a $10 billion loan from the US Export-Import Bank and nearly $1.67 billion in private capital. Boosted by this announcement, rare earth stocks in the US surged on Tuesday, but on Wednesday, these stocks all dropped. By the end of Wednesday, United States Antimony (UAMY.US) fell by 16.3%, Lightbridge (LTBR.US) by 15%, Critical Metals (CRML.US) by 13.9%, Energy Fuels (UUUU.US) by 12.7%, and Oklo (OKLO.US) by 12.5%. The first Ministerial Meeting on Critical Minerals held on Wednesday attracted over 50 foreign ministers from Europe, Asia, and Africa. US Secretary of State Pompeo chaired the discussions on relevant topics, actively promoting countries to join the newly established protected trade zone. In recent weeks, the Trump administration has also been pushing for the US government to directly invest in domestic mining companies. The latest case occurred last week when the US government provided $1.6 billion in funding to a US rare earth company in exchange for shares in the company and related repayment agreements. These actions have extended to the US Congress. After passing a deal to end the partial government shutdown, the House of Representatives began debating the "Critical Minerals Dominance Act" on Wednesday, aimed at expanding mineral extraction on federal lands; meanwhile, the House also plans to introduce a bill to extend the authorization period for the US Export-Import Bank's financing for the next 10 years. It is still uncertain how effective tariffs will be in driving the construction of this global trade zone. Pence admitted on Wednesday that many countries are still hesitant to participate due to doubts about the willingness of other countries to join. He made a direct appeal to representatives of participating countries, emphasizing that even relying solely on the US market would be enough to support the advancement of this plan. He said, "Please finalize the relevant agreements as soon as possible."