President Trump signed an executive order on Tuesday instructing the Commerce Department to launch a national security investigation that laid the foundation for the administration to impose tariffs on key minerals.
Trump signs an order to launch a probe known as Section 232 investigation and determines the impact of imported, processed critical minerals on national security.
The executive order argues that importing important minerals led to a “significant” dependence on foreign countries on these materials.
“The reliance on US imports and supply chain vulnerabilities raises the possibility of risks to national security, defense preparation, price stability, economic prosperity and resilience,” the order said.
Important minerals and rare earth elements are specific groups of materials that are deposited only in relatively small amounts and can be used in a variety of applications, including electronics, healthcare, and batteries.
Because they occur naturally, it may be more difficult for the United States to produce more processed important minerals on its own. Last month, the president signed an order calling for wartime power under the Defense Production Act to expand U.S. mining production in the country, according to information shared by White House officials.
Trump launched a similar investigation on Monday, focusing on drugs and semiconductors. This is an indication that tariffs in these sectors could soon arrive.
The President has already announced tariffs on automobiles, steel and aluminum, with a baseline of 10% tariffs on all foreign imports. He announced more steeper “mutual” tariffs in dozens of other countries, but then reduced them to 10%, except for China, which faces 125% tariffs.
The tariff wave and changing timelines and exemptions have led to a decline in the stock market. Experts have long warned that businesses could pass the costs of tariffs to consumers, leading to prices spikes.
