WASHINGTON (dpa-AFX) - President Donald Trump has signed an Executive Order launching an investigation into the national security risks posed by U.S. reliance on imported processed critical minerals and their derivative products.
The Order directs the Secretary of Commerce to initiate a Section 232 investigation under the Trade Expansion Act of 1962 to evaluate the impact of imports of these materials on the United States' security and resilience.
The investigation will assess vulnerabilities in supply chains, the economic impact of foreign market distortions, and potential trade remedies to ensure a secure and sustainable domestic supply of these essential materials.
The investigation will culminate in a report detailing risks and providing recommendations to strengthen domestic production, reduce dependence on foreign suppliers, and enhance economic and national security.
If the Secretary of Commerce submits a report finding that imports of critical-mineral articles threaten to impair national security and the President decides to impose tariffs, the Trump administration will impose new tariff rate under Section 232, replacing the current reciprocal tariff rate, pursuant to President Trump's April 2 order.
An overreliance on foreign critical minerals and their derivative products could jeopardize U.S. defense capabilities, infrastructure development, and technological innovation, according to President Trump.
Processed critical minerals and their derivative products are key building blocks of U.S. defense industrial base and integral to applications such as jet engines, missile guidance systems, advanced computing, radar systems, advanced optics, and secure communications equipment.
The United States remains heavily dependent on foreign sources, particularly adversarial nations like China, for these essential materials, exposing the economy and defense sector to supply chain disruptions and economic coercion.
A few months ago, China had banned exports to the United States of gallium, germanium, antimony, and other key high-tech materials with potential military applications.
Just this week, China suspended exports of six heavy rare earth metals, as well as rare earth magnets, in order to choke off supplies of components central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world.
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