Trump Initiates Investigation into the Necessity of Imposing Tariffs on Critical Mineral Imports

On April 16th, President Trump has set in motion a requisite investigation into the levying of tariffs on crucial minerals. This is the latest action in the escalating trade war that is targeting the key sectors of the global economy. According to a summary from the White House, the order signed by Trump on Tuesday instructed the Secretary of Commerce to commence a Section 232 investigation under the 1962 Trade Expansion Act. The purpose of this investigation is to "assess the impact of importing these materials on U.S. national security and resilience." If the Secretary of Commerce determines that imported critical minerals pose a threat to "national security," the President will decide to impose tariffs. This would replace the so-called reciprocal tariffs that Trump imposed on U.S. trading partners earlier this month. The order pertains to key minerals, including rare earth elements, which are regarded as the "cornerstone of the U.S. defense industrial base." These minerals are essential for manufacturing jet engines, missile guidance systems, advanced computers, as well as radar, optical, and communication equipment. The order also encompasses uranium and processed critical minerals and derivative products. By law, the Secretary of Commerce is obligated to submit the investigation results within 270 days. The White House stated that although the U.S. has some significant mineral resources, it still imports a substantial amount, which poses economic and security risks. The U.S. government indicated that the U.S. depends on imports for at least 15 critical minerals. These critical minerals are used in defense, automotive, space travel, batteries, and other equipment, but a large portion of the U.S. supply is reliant on other countries.