by Kate Sullivan and Ari Natter
President Donald Trump has launched a probe into the need for tariffs on critical minerals, the latest action in an expanding trade war that has targeted key sectors of the global economy.
The order, which Trump signed on Tuesday, calls for the commerce secretary to initiate a Section 232 investigation under the Trade Expansion Act of 1962 to “evaluate the impact of imports of these materials on America’s security and resilience,” according to a White House fact sheet.
If the secretary finds that the imports threaten to “impair national security and the President decides to impose tariffs,” those levies would take the place of current so-called reciprocal duties Trump announced earlier this month on US trading partners.
The order covers a range of minerals, including rare earth elements, that the US government considers “building blocks of our defense industrial base” and crucial to building jet engines, missile guidance systems, advanced computers, as well as radar, optics and communications equipment. The order also covers uranium, as well as processed forms of the minerals and derivative products.
Under the law, the Commerce secretary is expected to deliver the results of his investigation within 270 days.
Trump had signaled the move in recent days, suggesting that his administration could consider levies on critical minerals, following other sector-specific tariffs he has imposed on steel and aluminum, automobiles and car parts. On Monday, the administration also announced that they had initiated investigations into semiconductors and pharmaceutical imports — also led by the Commerce Department.
The latest probe could cover all minerals defined as critical by the United States Geological Survey, according to the White House. The USGS list of 50 materials includes lithium, nickel, zinc, tin and platinum as well as an array of more niche metals, although officials will have leeway in deciding which would ultimately be the subject of recommendations.
The president last month also invoked emergency powers to boost the ability of the US to produce critical minerals — part of a broad effort to ramp up development of domestic natural resources and make the country less reliant on foreign imports. That order seeks to provide financing, loans and other investment support to domestic processing.
Despite possessing reserves of some critical minerals, the US currently imports a significant amount, creating economic and security risks, according to the White House. The administration said the US is import-reliant when it comes to at least 15 critical minerals, while 70% of imports of rare earths come from China.
Trump’s order comes as China responds to US tariffs with export curbs on some rare earths, with potential impact across the US, Europe, and Japan. Beijing’s latest restricted list includes samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium — mostly used in displays, powerful magnets and crucial medical technology.
Trump has implemented sweeping tariffs in a bid to bolster US manufacturing and energy production and to bring in fresh revenue for the federal government. But those moves have rattled markets worried that the president’s levies will saddle consumers with higher prices, break international supply chains and reduce trade — potentially tipping the global economy into a downturn.
Trump earlier this month leveled — and then quickly paused — higher tariffs on about 60 US trading partners, in a bid to give those countries time to negotiate deals to avert the increased import duties. That reprieve, has not deterred the president from moving ahead on sectoral-specific tariffs.
Copyright Bloomberg News
From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.
Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.
“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.
Sellers shift focus: It's not about succession anymore.
Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
