Jim Cramer Says America Won't Be 'Truly Liberated' Until It Strikes Rare-Earth Deals With Other Countries: US Doesn't 'Have The Cards'

Jim Cramer warned that the United States must cut deals with nations other than China for rare-earth minerals, or we'll never be “truly liberated" from Beijing's grip.

What Happened: The CNBC “Mad Money” host told viewers on Wednesday that China mines about 60% and refines roughly 90% of the world's rare earths. This, as Cramer described earlier this month, gives China "a stranglehold" over supply chains that feed electronics, autos and defense hardware.

"What the heck were we thinking when we started a trade war without having this rare-earths issue all buttoned up and ready to go?" he asked, adding that Washington doesn't “have the cards" while it depends on Chinese exports already throttled by new licensing rules.

Cramer urged the White House to waive steep tariffs and strike rapid supply pacts with Brazil, Vietnam and Australia, countries he said hold the raw materials for earth minerals and magnets. "We need to make these rare-earth deals with the same alacrity that the White House gave out the reciprocal tariffs on ‘liberation day,'" Cramer said.

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Jim Cramer isn’t the only one sounding the alarm bell. Officials have long warned that America's reliance on China for rare-earth minerals creates a strategic threat and in April, China slapped export restrictions on those minerals after President Donald Trump raised tariffs sharply.

Why It Matters: According to a Reuters report, Trump said on Wednesday that Beijing would “supply the minerals up front” as part of a tentative trade framework still awaiting his and President Xi Jinping's signatures. Commerce Secretary Howard Lutnick insists that the accord will ease the curbs, yet analysts note China could tighten shipments again if talks stall.

Automakers have already sounded alarms. A Reuters survey found that some European suppliers were idling plants, while others warned of shutdowns by mid-July. An older report reveals companies are willing to "pay any price" for alloys and magnets.

Reacting to the development, U.S. Futures were down on Wednesday night, with the S&P 500 futures down 0.30%, trading at 6,011; Nasdaq futures down 0.32%, at 21,818.50; and the Dow Jones futures, trading at 42,764, down 0.34%.

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