Agencies WASHINGTON

Facing China's reduced critical mineral exports, President  Donald Trump has ordered a probe into potential tariffs on all US critical mineral imports. This move follows concerns from manufacturers, consultants, and academics about the US's reliance on China and other nations for processed minerals. Trump's order highlights the potential risks to national security, defence, price stability, and economic resilience due to this import dependency.  

As per the order, Commerce Secretary Howard Lutnick will conduct a national security review under Section 232 of the Trade Expansion Act.  The same law was used for previous steel and aluminum tariffs and a recent copper probe. Within three months, Lutnick must report his findings, including tariff recommendations. Any tariffs imposed would supersede existing reciprocal tariffs. 

The review will assess US vulnerabilities in processing critical minerals like cobalt, nickel, rare earths, and uranium. It will also examine foreign market distortions and strategies to boost domestic supply and recycling. China's recent export restrictions on rare earths, a group of 17 elements vital to defence, EVs, energy, and electronics, amplified US supply concerns. The US has only one rare earths mine and largely relies on China for processing.

These restrictions are seen as China leveraging its dominance in critical mineral mining and processing, following previous export bans on other metals to the US and broader export controls. The influx of cheap critical mineral supplies from Chinese companies globally has intensified calls for US support of domestic mining projects.