Florida Senator Marco Rubio, who is rumored to be among the three finalists for Donald Trump’s selection for Vice President, submitted a bill to end US reliance on China for critical minerals. Below is an official statement from Rubio’s office regarding the e Critical Mineral Supply Chain Realignment Act of 2024:
The Chinese Communist Party’s industrial monopoly on critical mineral-intensive goods is a national security vulnerability. To reduce China’s leverage, the U.S., its allies, and partners must break free from supply chains relying on Chinese minerals.
U.S. Senator Marco Rubio (R-FL) introduced the Critical Mineral Supply Chain Realignment Act of 2024 to incentivize safeguarding critical mineral supply chains from Communist China.
- “The U.S. and its partners must end Communist China’s critical mineral industrial monopoly. My bill will provide more certainty to industry based in the U.S. and partner and ally countries so they may be able to develop a critical mineral industrial ecosystem China’s market manipulations cannot undercut.” – Senator Rubio
Specifically, this bill imposes mandatory tariffs on electromagnets, permanent magnets, batteries, solar panels, and solar wafers at rates of:
- 150% on goods manufactured by entities controlled by China, irrespective of which country the goods are manufactured in;
- On those goods manufactured in China, 150% in the first year, 300% in the second year, 450% in the third year, and 800% each year after that;
- 25% on goods manufactured in countries that are not allies of the U.S., select free trade partners, or members of the Mineral Security Partnership.
With the tariff framework established by this bill, the United States will be encouraged to work with trade partners to create tariff-free supply chains amongst themselves, sending a market signal that would quickly shift capital investments away from China and towards the United States, partners, and allies.