U.S. President Donald Trump has ordered a national security review of all critical mineral imports, signaling a sharp escalation in trade tensions and a bid to reduce reliance on China. The executive order, signed Tuesday, directs Commerce Secretary Howard Lutnick to assess vulnerabilities under Section 232 of the Trade Expansion Act—the same law Trump used to impose steel and aluminum tariffs in his first term.
The U.S. is heavily dependent on imports for key minerals like lithium, cobalt, nickel, uranium, and rare earth elements. China, the world’s leading producer of 30 out of 50 U.S.-listed critical minerals, has recently tightened export controls, prompting growing concerns about supply chain security.
Trump’s order will examine foreign market distortions, the lack of U.S. processing capabilities, and potential tariff actions. It includes a broad assessment of supply chain weaknesses, from mineral extraction to the production of semi-finished goods such as battery cathodes and wind turbines. The U.S. currently has limited infrastructure, with only one rare earth mine, no domestic cobalt refinery, and just a few copper and nickel facilities.
Beijing's latest rare earth export restrictions, viewed as retaliation for U.S. tariffs, have heightened fears of supply shocks. Analysts warn that China’s dominance allows it to weaponize mineral access, putting U.S. industries at risk.
Trump’s move also seeks to close tariff loopholes and incentivize domestic mining and processing. Last month, he signed another order to fast-track permits for critical mineral projects on federal lands.
With China flooding global markets with low-cost minerals, U.S. officials and industry experts stress the urgent need for a self-sufficient mineral supply chain. The Commerce Department has 180 days to report findings, potentially setting the stage for new tariffs aimed at securing U.S. economic and defense resilience.