Overview

• President Trump signed an executive order initiating a Section 232 investigation into the national security risks of relying on imported processed critical minerals.
• The probe will assess the potential for imposing tariffs on minerals like cobalt, nickel, and rare earth elements, which are essential for industries such as defense and electronics.
• The U.S. currently lacks sufficient domestic production and processing capacity for critical minerals, with China dominating the global supply chain for these materials.
• This investigation follows China's recent export restrictions on rare earths, escalating trade tensions and highlighting U.S. supply chain vulnerabilities.
• The critical minerals probe is part of a broader strategy that includes similar investigations into pharmaceuticals and semiconductors, alongside recent tariffs on other key sectors.