Trump signs deal for rare earth minerals with Australia, promising a deal to come with China

President Donald Trump hosted Australian Prime Minister Anthony Albanese Monday to sign a rare-earth minerals deal, furthering an alliance that began during World War I.

The two countries “intend to support the supply of raw and processed critical minerals and rare earths crucial to the commercial and defense industries of the United States and Australia,” part of the agreement reads. 

“We’ve been longterm, longtime allies, and I would say there’s never been anybody better,” Trump said from the Cabinet Room, where the meeting took place. “We’ve fought wars together. We never had any doubts.”

Albanese said Australia and the U.S. are partnering on “joint activities” and future investments in both countries. Also in the works is a three-way alliance between Australia, the U.S. and Japan, he said, comparing Australia’s efforts to the “America First” mindset of the Trump administration. 

“Our plan is called ‘a future made in Australia,’ which is about not just digging things up and exporting them, but how do we make sure that we have across the supply chains with our friends being able to benefit and seize those opportunities,” Albanese said. “We certainly see part of what this is about – isn’t just digging things up. It’s also about processing, including joint ventures between Australia and the United States.” 

Trump said he and Albanese would be discussing “anything having to do with military protection,” including ships, vehicles, guns and ammunition. Trump praised Australia for its “fantastic job with weaponry.” 

Trump also said Australia pays relatively low U.S. tariffs – one of America’s “tremendous powers” – and buys American aircraft, including “beautiful Boeings” because of its location in the Pacific. 

The partnership between the U.S. and Australia supplies America with rare earth minerals to compete with China, which produces more than 90% of the world’s rare earths supply but is restricting access. Trump said his high tariffs will pressure China to cooperate with the U.S., and he believes the two countries will reach agreement by Nov. 1. 

“If we don’t make a deal, we’ll charge them a very substantial tariff, and they’ll be paying us hundreds of billions of dollars a year,” Trump said. “Tariff is a nicer way of saying that we don’t want to do business with you. And if they don’t do business with us, I think China’s in big trouble.” 

He said he doesn’t want China to struggle and that he “loves his relationship with President Xi.” 

“I don’t want them to be in big trouble. I want them to do great,” Trump said. “I want them to thrive, but we have to thrive together. It’s a two-way street. I think when we finish our meetings it’s going to be a big deal.” 

Trump and Xi plan to meet in South Korea, where Trump said he expects to work out “a fair deal.” 

“I think we’re going to end up having a fantastic deal with China,” he said. “It’s going to be a great trade deal. It’s going to be fantastic for both countries, and it’s going to be fantastic for the entire world.” 

On maritime defense, Albanese said the U.S. Navy has played a “critical role” in Australian submarine technology. Trump complimented Australia’s development of submarine “docking,” saying their work is “very strong.” 

“They’re building magnificent holding pads for submarines,” Trump said. “It’s going to be expensive. You wouldn’t believe the level of complexity and how expensive it is. They’re building tremendous docking because they have a lot of ships and a lot of things happening.” 

Albanese congratulated Trump on his successful end to the war in the Middle East as an “extraordinary achievement.”  

“It’s a great honor to be able to say we are great friends and we’re great allies,” Albanese said. “This is a relationship that’s been forged in the battlefields of the world. We have stood side by side for freedom and democracy. And on defense, we’ve already had a discussion about taking it to the next level.” 

Photo credit: The White House