Trump Orders Tariff Probe on Critical Minerals for National Security

President Trump has initiated a necessary investigation into the imposition of tariffs on critical minerals, marking the latest move in the escalating trade war targeting the global economic key sectors. The order, signed by Trump on Tuesday, instructs the Secretary of Commerce to initiate a Section 232 investigation under the 1962 Trade Expansion Act. This investigation aims to "assess the impact of importing these materials on U.S. national security and resilience." If the Secretary of Commerce finds that imported critical minerals threaten "national security," the President may decide to impose tariffs, which would replace the so-called reciprocal tariffs imposed on U.S. trading partners announced by Trump earlier this month.

The order involves key minerals, including rare earth elements, which are considered the "cornerstone of the U.S. defense industrial base." These minerals are vital for manufacturing jet engines, missile guidance systems, advanced computers, as well as radar, optical, and communication equipment. The order also involves uranium and processed critical minerals and derivative products. By law, the Secretary of Commerce is required to submit the investigation results within 270 days.

The White House stated that despite the U.S. having some important mineral resources, it still imports a significant amount, posing economic and security risks. The U.S. government indicated that the U.S. relies on imports for at least 15 critical minerals. These critical minerals are used in defense, automotive, space travel, batteries, and other equipment, but much of the U.S. supply is dependent on other countries.

This move by Trump underscores the administration's focus on national security and economic resilience. By investigating the impact of critical mineral imports, the U.S. aims to reduce its dependence on foreign suppliers and ensure a stable supply chain for essential industries. The investigation will provide a comprehensive assessment of the risks associated with importing these materials and will inform the President's decision on whether to impose tariffs. The outcome of this investigation could have significant implications for global trade and the U.S. economy, as it may lead to changes in trade policies and supply chain strategies.