Friday 17th October 2025

Please note this communication is not a research report and has not been prepared by NAB Research analysts. Read the full disclaimer here.

Earlier this week Donald Trump and Anthony Albanese announced a new rare earths deal and confirmation of the AUKUS defence agreement. The market response was fairly tame. Are we becoming desensitised to the plethora of unilateral deals the US has been doing lately, and sceptical that the promises will see the light of day?

James Carouso, who has spent 25 years with the US Department of State, suggests this deal is different. It’s key to the US aim of reducing its reliance on China for rare earths and critical minerals. For Australia it provides an opportunity to support onshore processing.

James is a senior foreign policy adviser for the Centre for Strategic and International Studies in Washington, and he’s spent a good few years in Canberra as a member of the team negotiating the free trade deal with Australia, ratified in 2005. He clearly thinks Australia should embrace the opportunity and this new partnership could provide the leverage to ask for a reduction in steel and aluminium tariffs.

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