On Tuesday, U.S. President Donald Trump ordered an investigation into the potential introduction of new tariffs on all imports of crucial minerals to the United States, significantly intensifying his ongoing trade tensions with global partners. The move is seen as a direct attempt to exert pressure on China, the world’s leading processor of many essential minerals.
The directive highlights long-standing concerns from manufacturers, industry analysts, and academics who have warned of America’s excessive dependence on countries like China for processed minerals that underpin key sectors of the U.S. economy.
Nvidia says it expects to take a $5.5 billion blow as the U.S. clamps down on chip exports to China.
China plays a dominant role in the production of 30 out of the 50 minerals deemed critical by the U.S. Geological Survey. It has been tightening its grip on exports in recent months, further raising alarms in Washington about supply chain vulnerabilities.
Trump’s order instructs Commerce Secretary Howard Lutnick to initiate a national security review under Section 232 of the Trade Expansion Act of 1962—the same legislation previously used by Trump to impose 25% global tariffs on steel and aluminium, as well as to launch an inquiry into copper tariffs earlier this year.
When asked for a response to the move, China’s foreign ministry stated on Wednesday that “artificial interference in the supply chain violates the laws of the market economy and international trade rules.”
Trump warned in the order that America’s reliance on foreign mineral imports “raises the potential for risks to national security, defence readiness, price stability, and economic prosperity and resilience.”
Secretary Lutnick has 180 days to deliver a report to the president outlining findings and recommendations, which may include implementing tariffs. Should Trump proceed with new tariffs following the report, they would override the “reciprocal” tariffs introduced earlier this month, the White House confirmed.
The investigation will examine the vulnerabilities within the U.S. mineral supply chain, particularly in processing materials such as cobalt, nickel, rare earth elements, and uranium. It will also explore whether foreign actors are distorting global markets and identify measures to strengthen domestic sourcing and recycling efforts.
At present, the United States produces minimal lithium, operates only one nickel mine without a smelter, and lacks cobalt mining or refining capacity altogether. While the country has several copper mines, only two operational smelters remain, leaving it heavily reliant on foreign processing for this vital metal.
The review may offer opportunities for allied nations to seek exemptions, as Washington has previously suggested it may exclude certain minerals and energy imports from tariff measures if they are not readily available within the U.S.
