Jim Cramer says it's time for the U.S. to negotiate with other countries for rare earth minerals
CNBC's Jim Cramer on Wednesday said it's necessary for the U.S. to negotiate with countries other than China for rare earth minerals.
"We need to make these rare earth deals with the same alacrity that the White House gave out the reciprocal tariffs on 'liberation day.' We need them yesterday," he said. "Then, and only then, will we truly be liberated."
China dominates the global market for these critical minerals, producing about 60% and processing almost 90%, CNBC reported. The materials are used in most electronics and are vital to the automotive and defense industries. Officials have warned that the U.S.'s dependence on China for the minerals poses a strategic issue. China imposed export restrictions on rare earth minerals back in April in response to President Donald Trump's harsh tariff hikes.
Trump said on Wednesday that China will supply the minerals up front to the U.S. as part of a trade agreement. While he posted on Truth Social that the deal is "done," he also said it's "subject to final approval" between himself and Chinese President Xi Jinping.
According to Cramer, the U.S. needs to reach out to countries like Brazil, Vietnam and Australia, who have the raw materials for earth minerals and magnets. The U.S. should make deals with these countries immediately and perhaps wave the high tariffs that the White House put on their imports, he said.
Cramer said the U.S. doesn't "have the cards," in negotiations with China because of its reliance on rare earth minerals, even as it tries to disrupt China's manufacturing economy.
"What the heck were we thinking when we started a trade war without having this rare earths issue all buttoned up and ready to go?" he asked.
The White House did not immediately respond to request for comment
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