In response to US President Trump’s recently imposed tariffs, which have injected volatility into financial markets and emerged as a pivotal issue ahead of the upcoming federal election, Prime Minister Albanese has acknowledged that the nation is exploring the strategic use of its critical mineral wealth to negotiate with the U.S., which is actively seeking to diversify its supply chains and reduce reliance on China’s dominance in the critical minerals sector.
As part of this strategy, Australia is planning to establish a critical minerals strategic reserve in the coming weeks. This reserve would involve stockpiling key resources and potentially limiting their export. However, the Minerals Council of Australia (MCA) has voiced concerns about the proposal, stating that it introduces significant risks for investors and mining companies. The MCA is advocating for exemptions from the tariffs, particularly for minerals not readily available in the United States, including gold, which saw exports to the U.S. reach $4.6 billion in January 2025.
