WASHINGTON: The United States is pushing to make it tougher for defence contractors to get waivers for critical minerals and other materials from China and certain foreign suppliers, with an order President Donald Trump signed Monday (Jul 20).
Starting January 2027, firms seeking waivers to acquire sensitive materials from “non-allied foreign nations” will have to show exhaustive efforts to find compliant materials or prove that none was available, the order said.
These nations generally refer to China, North Korea, Russia and Iran.
China is the world’s biggest producer and refiner of rare earths, which are critical for high-tech products ranging from electric vehicles to missile guidance systems.
Contractors will also have to detail steps to remove such “non-compliant” sensitive material from defence supply chains and set up a timeline to do so, White House trade advisor Peter Navarro told reporters in a call.
Currently, certain rare earth magnets from countries like China can be procured for defence supply chains with a waiver.
Monday’s order also called for the defence secretary to require contractors and subcontractors to map out key supply chains that have national security implications.
The guidance for such requirements should be set out within six months, the order said.
“America cannot dominate the modern battlefield if the Department of War does not know where its critical materials, components and software come from,” said David Copley, White House senior director of global supply chains, in a statement.
“This is not paperwork,” Navarro said. “It is battlefield preparation.”