G7 Allies Seek Alternatives to U.S. Critical Minerals Bloc

Japan, France, and Canada, members of the G7, are actively developing alternatives to a U.S.-led trade bloc for securing critical minerals and reducing their reliance on China. These alternatives include import quotas on rare earths, subsidies for mining companies to diversify supply chains, and a Canada-led G7 buyers' club initiative. This move comes as the United States, under Vice President JD Vance, proposed its own trade bloc, but some allies are pursuing different strategies, partly influenced by U.S. President Donald Trump's past alienation of allies. China currently dominates the rare earth market, controlling over 90% of these metals and having imposed export controls in retaliation for U.S. tariffs. Countries like Japan are funding rare earth projects with allies such as Australia and Canada, encouraging their industries to engage commercially despite potentially higher costs. Canada has already secured C$18 billion in mining investments since October, and Australia has joined Canada's critical minerals production alliance. France supports Canada's buyers' alliance and plans to advance the concept when it chairs the G7 this year.