United States President, Donald Trump,on Tuesday initiated a sweeping investigation into the potential imposition of new tariffs on all imports of critical minerals, a move that marks a significant intensification of his ongoing trade conflict with key global partners and sends a pointed message to China, the sector’s dominant force.
The directive underscores what experts, ranging from manufacturers and industry consultants to scholars, have long cautioned: the United States is heavily dependent on foreign nations, particularly China, for refined critical minerals vital to the functioning of its economy.
Trump signed the executive order at the White House, instructing Commerce Secretary Howard Lutnick to launch a national security investigation under Section 232 of the Trade Expansion Act of 1962.
The same statute was previously invoked during Trump’s first term to enforce 25% tariffs on steel and aluminum and was recently used in February to explore possible duties on copper.
The order calls for a comprehensive analysis of the market dynamics surrounding key minerals such as cobalt, nickel, and all 17 rare earth elements. It also includes uranium and other elements deemed essential by federal authorities.
Despite its vast natural resources, the U.S. plays a limited role in the global production of these minerals. It currently has minimal lithium processing capacity, operates a single nickel mine without a domestic smelter, and lacks both cobalt mining and refining facilities.
While copper is mined domestically, only two smelters operate within the U.S., leaving the country reliant on foreign nations for much of its copper processing.
“The dependence of the United States on imports and the vulnerability of our supply chains raises the potential for risks to national security, defense readiness, price stability, and economic prosperity and resilience,” Trump stated in the order.
In a retaliatory move earlier this month, China imposed export restrictions on rare earth elements in response to the U.S.’s recent broad tariff measures.
These elements, crucial across industries such as defense, electronics, energy, and electric vehicles, are predominantly mined and processed in China.
The United States, by contrast, has only a single rare earth mine and relies heavily on Chinese processing.
China’s move is widely interpreted as a strategic demonstration of its ability to leverage its control over the critical minerals supply chain, following similar bans and export controls on several other metals in the previous year.
Meanwhile, a surge of cheap critical mineral exports from Chinese companies worldwide has prompted renewed pressure from U.S. industry leaders and investors, urging Washington to bolster domestic mining and processing capabilities.
