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Move would follow an investigation into US reliance on imports President Trump has signed an executive order to investigate US reliance on imported processed critical minerals and their derivative products, including the prospect of imposing new tariffs. According to the order: Foreign producers have engaged in price manipulation, overcapacity, and arbitrary export restrictions, using their supply chain dominance as a tool for geopolitical and economic leverage over the United States. It cites as an example, China banning exports to the United States of gallium, germanium, antimony, and other key high-tech materials with potential military applications. Furthermore, 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, the order states. The Order directs the Secretary of Commerce Howard W. Lutnick to initiate 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. This 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, according to the document. 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. Crucially, 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, any resulting tariff rate imposed under Section 232 would take the place of the current reciprocal tariff rate, pursuant to President Trump’s April 2 order. |
