United States President Donald Trump signed an agreement with the Prime Minister of Malaysia today, providing the United States with access to the Asian country's rare earth minerals.
China, which today has a virtual monopoly on these minerals, recently announced restrictions on the export of these materials, considered essential for a modern economy.
The trade agreement was signed by Donald Trump and Malaysian Prime Minister Anwar Ibrahim in the Malaysian capital Kuala Lumpur, where the US president is attending the Association of Southeast Asian Nations (ASEAN) summit.
"Malaysia has committed to guaranteeing that there will be no restrictions on the sale of rare earth minerals to US companies," the White House said in a joint statement with Kuala Lumpur.
Kuala Lumpur promises in the agreement to "refrain from banning or imposing quotas on exports of critical minerals to the United States." Washington, on the other hand, has agreed to impose a 19 percent tariff on Malaysian products.
Malaysia is also committing to accelerating the development of its critical minerals sector and partnerships with US firms, specifically by extending mining licenses to accelerate production capacity.
In 2023, Malaysia reported having about 16,2 million tons of unexploited reserves of rare earth minerals.
A national moratorium on the export of rare earth minerals came into effect in January 2024 to encourage processing in the domestic market.
"We live in a world where having critical minerals is essential to our manufacturing, to our technology and to our economy," said U.S. Trade Representative Jamieson Greer during the signing.
"It is crucial that we work together as willing partners to ensure the flow of our supply chains," he added.
Beijing announced new restrictions on the export of technologies related to rare earth minerals in early October, fueling trade tensions with Washington that have already spiked since Donald Trump returned to the White House.
Trump also announced a non-binding memorandum of understanding with Thailand today that envisions measures to strengthen cooperation in the trade of rare earth minerals.
Trump is expected to meet with the Chinese president on Thursday in Seoul.
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