President Donald Trump of the United States on Tuesday ordered a probe into potential new tariffs on all US critical minerals imports.
This is a major escalation in his dispute with global trade partners and an attempt to push back on industry leader, China.
The order disclosed what manufacturers, industry consultants, academics and others have long warned Washington about: that the US is overly reliant on China and others for processed versions of the minerals that power its entire economy.
DAILY POST reports that China is a top global producer of 30 of the 50 minerals considered critical by the US Geological Survey.
Trump signed an order mandating Commerce Secretary Howard Lutnick to commence a national security review under Section 232 of the Trade Expansion Act of 1962.
It is said to be the same law Trump used in his first term to impose 25% global tariffs on steel and aluminum and one he used in February to launch a probe into potential copper tariffs.
Trump said in the order that US dependency on minerals imports raises the potential for risks to national security, defense readiness, price stability, and economic prosperity and resilience.
Lutnick is required to report his findings to the president, within 180 days, including whether to impose tariffs.
According to the White House if Trump were to impose a tariff on a nation’s critical minerals, the rate would supersede the reciprocal tariffs Trump imposed earlier this month.
The order further stated that the review will assess US vulnerabilities for the processing of all critical minerals, including cobalt, nickel and the 17 rare earths, as well as uranium, how foreign actors could be distorting markets, and what steps could be taken to boost domestic supply and recycling.
The US currently extracts and processes scant amounts of lithium, has only one nickel mine but no nickel smelter, and has no cobalt mine or refinery.
