The US Government will investigate the imposition of new tariffs on all critical minerals imports under section 232 of the Trade Expansion Act of 1962 (section 232) to determine if they pose any risk to national security, under a new executive order issued by US President Donald Trump.
Trump’s executive order requires Secretary of Commerce Howard Lutnick to report his findings within 180 days, which may include recommendations for tariffs on critical minerals that would override existing reciprocal tariffs set earlier this month.
Go deeper with GlobalData
The review will examine US vulnerabilities in processing critical minerals such as cobalt, nickel, rare earths and uranium. It will also look into market distortions by foreign actors and strategies to enhance domestic supply and recycling.
The order stated: “Critical minerals, including rare earth elements, in the form of processed minerals are essential raw materials and critical production inputs required for economic and national security.
“Critical mineral oxides, oxalates, salts and metals (processed critical minerals), as well as their derivative products – the manufactured goods incorporating them – are similarly foundational to United States national security and defence.”
Currently, the US has limited capabilities to extract and process these minerals, with only a few mines and processing facilities.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataChina, a leading producer of many critical minerals, has recently reduced its exports, raising alarms about US dependency and potential risks to national security and economic resilience, reported Reuters.
The initiative is part of Trump’s broader efforts to boost US minerals production and processing, which include expediting the approval of US mines and identifying federal lands for minerals processing.
However, the lengthy timeline required to establish new mines and facilities is a concern for securing minerals in the short term.
The recent export restrictions by China on rare earths, in response to Trump’s tariffs, have heightened supply concerns among US officials.
The White House also highlighted Trump’s focus on closing tariff loopholes and exemptions in the supply chain, which involves multiple countries, thereby reinstating a genuine 25% tariff on steel and increasing the tariff on aluminium to 25%.
The new executive order follows a pause on tariffs imposed by Trump on 75 countries, which initiated discussions regarding new trade agreements, except China, which responded with retaliatory measures.
As a result of the measures, China now faces tariffs of up to 245% on its imports to the US.
Navigate the shifting tariff landscape with real-time data and market-leading analysis.
Request a free demo for GlobalData’s Strategic Intelligence here.
