The trade ties between the European Union and the United States have lately looked strong yet fragile. Still, last week brought signs of rapprochement on the critical raw materials underpinning the green and digital transitions. The logic seems simple: the enemy of my enemy is my friend.
The transatlantic trade relationship has been turbulent in recent years. Tariffs, industrial policy and supply-chain security have often pulled the European Union and the United States in different directions. Yet a quieter alignment may now be emerging around one of the most strategic economic issues of the decade: critical raw materials.
During a meeting on the sidelines of a World Trade Organisation ministerial conference in Yaoundé, Cameroon, Europe’s trade chief Maroš Šefčovič described discussions with his American counterpart, Jamieson Greer, as “very positive”. The two sides agreed to advance cooperation on critical minerals—resources such as lithium, cobalt and rare earths that are essential for batteries, renewable energy and advanced electronics.
Further institutional progress is also underway. European ambassadors were expected to approve a Memorandum of Understanding (MoU) on critical minerals, a non-binding agreement designed to pave the way for deeper technical cooperation between Brussels and Washington. The move follows the European Council’s decision to authorise the European Commission to participate in the United States’ “Project Forge”, an initiative that seeks to strengthen supply-chain resilience among allied economies.
The push for coordination reflects a shared concern: China’s dominant role in the extraction and processing of many of these materials. Both Brussels and Washington have introduced policies aimed at reducing dependence on single suppliers. But unilateral measures risk fragmenting markets. Cooperation, officials hope, could instead stabilise them.
One idea under discussion is closer alignment on pricing mechanisms and supply-chain support. Some policymakers have floated the notion of price floors for certain minerals. Such tools could help sustain investment in new mining and refining capacity in allied economies, which often struggle to compete with lower-cost producers.
The renewed dialogue follows a fragile easing of trade tensions between the two sides. Last year, negotiations in Turnberry, Scotland, produced a compromise tariff arrangement that avoided a broader trade war. The United States agreed to impose a 15% tariff on most EU goods (half the previously threatened level) while the EU is expected to allow most U.S. imports to enter tariff-free. After the European Parliament approved its position, negotiations with the Council of Ministers are expected to begin in April.
The economic stakes are considerable. The United States is the EU’s largest trading partner, with European exports reaching €555bn in 2025. Maintaining stable trade flows while securing supply chains has therefore become a delicate balancing act.
Critical minerals are not the only sector where Brussels sees scope for cooperation. Speaking again in Yaoundé, Mr Šefčovič suggested that the EU and the United States should also work together to tackle global steel overcapacity. The problem—largely linked to excess production in Asia—has triggered defensive tariffs across Western economies. Washington currently applies duties of up to 50% on certain steel products.
A coordinated response, Mr Šefčovič argued, could extend beyond the EU and the United States to include the United Kingdom and other members of the Group of Seven (G7). Such a coalition would represent a powerful share of global industrial demand.
