Trump orders Section 232 investigation into critical minerals imports
President Trump has signed an executive order launching a national security investigation ‘to determine whether imports of processed critical minerals and their derivative products threaten to impair national security,’ as the United States and China battle over supplies of the rare earth elements that go into making everything from semiconductors and smartphones to electric vehicles and fighter jets.
Trump cited concerns over ‘significant global supply chain vulnerabilities and market distortions due to reliance on a small number of foreign suppliers,’ according to a White House announcement, 15 April.
The investigation, authorised under Section 232 of the Trade Expansion Act of 1962, will examine whether American dependence on foreign sources of critical minerals, including rare earth elements used in defense and high-tech applications, threaten America’s national security.
“Critical mineral oxides, oxalates, salts, and metals, as well as their derivative products — the manufactured goods incorporating them” are “foundational to United States national security and defence,’ the executive order states. It notes that these materials are ‘essential for economic security and resilience because they underpin key industries, drive technological innovation, and support critical infrastructure vital for a modern American economy.’
The order specifically cites several factors contributing to supply chain risks, including ‘geopolitical tensions, wars, natural disasters, pandemics, and trade conflicts,’ as well as ‘widespread price manipulation, overcapacity, arbitrary export restrictions, and the exploitation of supply chain dominance’ by major foreign producers.
Trump’s executive order makes no mention of China and its recent ban on exports of seven rare earths, on top of other critical minerals it has placed under export controls over the past three years.
The Commerce Secretary will lead the investigation, with an expedited timeline requiring a draft interim report within 90 days of the order and a final report with recommendations within 180 days.
The scope of the investigation is extensive, covering not only the 50 minerals on the US Geological Survey’s ‘Critical Minerals List’ and uranium, but also all ‘derivative products’ that incorporate these materials – ranging from semiconductor wafers and permanent magnets to finished goods like electric vehicles, smartphones and radar systems.
In considering potential actions, the Secretary is directed to evaluate ‘the imposition of tariffs as well as other import restrictions,’ measures to incentivise domestic production, and additional actions under the International Emergency Economic Powers Act (‘IEEPA’).
This investigation follows the implementation of export controls on rare earth elements earlier this month by China, which currently dominates global production and processing of many critical minerals, accounting for approximately 90% of rare earth element processing capacity worldwide.
The move represents an expansion of the administration’s use of Section 232 authority, which allows for trade restrictions when imports are determined to threaten national security. The Commerce Department is currently conducting a separate Section 232 investigation into semiconductor imports that was announced earlier this month.
Unlike the semiconductor investigation, which focuses primarily on competition with allies like Taiwan, South Korea, and Japan, the critical minerals probe appears more directly targeted at reducing dependence on supplies from China, with whom Trump has launched a trade and tariff war to retain US military and tech superiority.
