Trump Launches Critical Minerals Probe to Consider New Tariffs
President Donald Trump has launched an investigation into the need for tariffs on critical minerals, the latest move in a widening trade war that has targeted key sectors of the global economy.
The order, signed by Trump on Tuesday, calls on the commerce secretary to launch a Section 232 investigation under the Trade Expansion Act of 1962 to “evaluate the impact of imports of these materials on America’s security and resilience,” according to a White House fact sheet.
If the secretary finds that the imports threaten to “undermine national security and the President decides to impose tariffs,” the levies would replace the so-called reciprocal duties that Trump announced earlier this month on U.S. trading partners. The order covers a range of minerals, including rare earth elements, which the U.S. government considers “fundamental components of our defense industry” and essential for building jet engines, missile guidance systems, advanced computers, and radar, optical and communications equipment. It also covers uranium, as well as refined forms of the mineral and its derivatives.
Under the law, the Commerce Secretary is expected to deliver the results of his investigation within 270 days.
Trump has hinted at the move in recent days, suggesting that his administration could consider levies on critical minerals, following other sector-specific tariffs he has imposed on steel and aluminum, cars and auto parts. On Monday, the administration also announced that it had opened probes into semiconductors and pharmaceutical imports — also led by the Commerce Department.
The latest probe could include all minerals designated as critical by the United States Geological Survey, according to the White House. The USGS’s list of 50 materials includes lithium, nickel, zinc, lead and platinum as well as a range of more specific metals, though officials will have discretion in deciding which ones will ultimately be the subject of recommendations.
Last month, the president also invoked emergency powers to boost the U.S.’s ability to produce critical minerals — part of a broader effort to boost domestic natural resource development and make the country less dependent on foreign imports. The order seeks to provide financing, loans and other investment support for domestic processing.
Despite having reserves of several critical minerals, the U.S. currently imports significant amounts, creating economic and security risks, according to the White House. The administration says the U.S. is dependent on imports for at least 15 critical minerals, while 70% of rare earth imports come from China.
Trump’s order comes as China has responded to U.S. tariffs with export restrictions on several rare earths, with potential impacts across the U.S., Europe and Japan. Beijing’s latest list of restrictions includes samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium — most of which are used in displays, powerful magnets and critical medical technology.
Trump has imposed broad tariffs in an effort to boost U.S. manufacturing and energy production and bring in new revenue for the federal government. But the moves have rattled markets that worry the president’s levies will burden consumers with higher prices, disrupt international supply chains and reduce trade — potentially tipping the global economy into a recession.
Trump earlier this month raised — and then quickly paused — higher tariffs on about 60 U.S. trading partners, in an effort to give those countries time to negotiate deals to avoid increased duties. The pause, however, does not preclude the president from resuming sector-specific tariffs. Source: Bloomberg
