Reviewed by Gotrade Internal Analyst
Gotrade News - The US has officially launched the FORGE trade alliance to break China’s stranglehold on the global critical minerals market. This strategic move brings together 54 countries to coordinate pricing for the raw materials powering the next generation of tech.
Vice President JD Vance made it clear that this bloc will set price floors backed by specific tariffs. The policy is designed to stop China from flooding the market with subsidized minerals, a tactic that has historically crushed global competition.
Key Takeaways:
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The US unveiled FORGE, a 54-nation alliance to control critical mineral pricing and challenge China’s dominance.
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President Trump also launched the $12 billion Project Vault as a strategic reserve to buffer against supply shocks.
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Tech giants may face higher input costs, but the trade-off promises a more stable and secure supply chain.
Secretary of State Marco Rubio warned that relying on a single country creates dangerous geopolitical risks for the global economy. Currently, China controls roughly 70 percent of rare earth mining and over 90 percent of processing capacity.
President Donald Trump also introduced Project Vault, a $12 billion initiative to build a strategic stockpile of essential minerals on Monday (02/02). The fund includes $10 billion from the US Export-Import Bank and private capital to secure supply lines.
Impact on Big Tech
This shift directly hits the production costs for tech leaders like Tesla which rely heavily on stable battery supplies. Chipmakers and giants like Apple must also brace for potentially higher raw material price tags in the near future.
The stock market has already reacted, with non-Chinese mining stocks rallying over the past few months. Investors view this Western intervention as a bullish signal for long-term supply chain security and sustainability.
The alliance’s success now hinges on whether members can stick to the pricing rules amidst global market pressure. If FORGE holds the line, the era of the world relying on cheap Chinese minerals might be gone for good.
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Reference:
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The Tech Buzz, U.S. Launches Minerals Trade Bloc to Break China's Grip. Diakses pada 5 Februari 2026
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CNBC, U.S. proposes critical minerals trade bloc aimed at countering China’s grip. Diakses pada 5 Februari 2026
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Featured Image: CNN
