UPDATE - US seeking to form critical mineral 'preferential trade zone' to counter China

ADDS DETAILS THROUGHOUT

By Michael Hernandez

WASHINGTON (AA) - The Trump administration is seeking to form a critical minerals "preferential trade zone" with allied nations that will seek to push back on efforts to flood domestic markets with heavily subsidized products, Vice President JD Vance announced Wednesday.

While not mentioned by name, China, the world's largest producer of critical minerals, loomed large over Wednesday's gathering.

Addressing delegations from over 50 nations, Vance said the US is seeking to build consensus to form the group "to eliminate that problem of people flooding into our markets with cheap critical minerals to undercut our domestic manufacturers," a likely reference to Chinese trade practices that have repeatedly been criticized by the US and allied nations.

"The Trump administration is proposing a concrete mechanism to return the global critical minerals market to a healthier, more competitive state, a preferential trade zone for critical minerals protected from external disruptions through enforceable price floors," Vance said at a ministerial meeting in Washington.

"We will establish reference prices for critical minerals at each stage of production, pricing that reflects real-world fair market value, and for members of the preferential zone, these reference prices will operate as a floor maintained through adjustable tariffs to uphold pricing integrity," he added.

Secretary of State Marco Rubio further said nations interested in joining the group who do not have adequate critical minerals can be involved in other stages of production, maintaining "everyone here has has role to play.".

"Our goal is to have a global market that's secure, a global supply that's enduring and is available to everyone, every nation, at an affordable price," said Rubio.

"We stand ready and intend to work with each country here today to find a specialized role that you can play. If you don't have minerals, you can help refine them. And the countries gathered here include the largest consumers of critical mineral products, who together have the buying power to build a more resilient and diverse global market," he added.