The order reveals what manufacturers, industry consultants, academics and others have long warned about Washington: America is too dependent on Beijing and others, while others are used to bring a processed version of the minerals that kick-off the entire economy.
Trump directed Commerce Secretary Howard Lutnick to initiate a national security investigation under Section 232 of the Trade Expansion Act of 1962. This is in line with Trump’s law used in his first term to impose a 25% global tariff on steel and aluminum, and a copper tower was proposed in February for a potential copper tower.
Under the order, market dynamics for all key minerals, including cobalt, nickel and 17 rare earths, will be studied to increase potential tariffs, the order adds uranium and any other factors deemed necessary by U.S. federal officials.
The United States currently has very few extraction and process numbers, with only one nickel ore, but no nickel smelters, and no cobalt ore or oil refineries. Although it has multiple copper ores, the United States has only two copper smelters and relies on other countries to handle the critical red metal.
“U.S. reliance on imports and supply chains increases risks to national security, defense preparation, price stability, and economic prosperity and resilience,” Trump said in the order. Beijing earlier this month imposed restrictions on rare earth exports on Trump’s recent broad tariffs. Rare Earth is a set of 17 elements used in the defense, electric vehicles, energy and electronics industries. There is only one rare earth mine in the United States, and most of its processing supplies come from China. The restrictions are seen as the latest proof of the country’s ability to enable its dominance in mining and processing critical minerals, the country exported three metals to three other metals in the United States last year and shot export controls on others.
In recent years, Chinese mining companies around the world have been in flooded markets to supply many critical minerals, exacerbating calls from industry and investors to take action from Washington to support U.S. projects.
