Trump orders review of tariffs on key mineral imports amid concerns over China’s monopoly

US President Donald Trump has ordered a review to consider new tariffs on imported critical minerals, aiming to reduce America’s dependence on foreign suppliers, especially China, as per reports. 

The order highlights concerns that the US relies too heavily on other countries for processed minerals that are essential to the economy and defense. China, in particular, plays a major role as the leading producer of many of these critical materials and has recently reduced its exports.

Trump directed Commerce Secretary Howard Lutnick to begin a national security investigation under a law known as Section 232 of the Trade Expansion Act of 1962. This law has been used before to apply tariffs on steel, aluminum, and, more recently, copper.

The review will take a close look at the US’s weaknesses in sourcing and processing vital minerals like cobalt, nickel, rare earth elements, and uranium. It will also explore whether other countries are unfairly controlling the market and what the US can do to increase its own production and recycling efforts.

Currently, the US has very limited capacity to mine and process many of these minerals. For instance, it lacks domestic facilities for cobalt and has only one operating nickel mine without a smelter. Lithium production is minimal, and while the US has a few copper mines, it only has two smelters and relies on other countries for most copper processing.

The Commerce Department has reportedly 180 days to complete the review and report back to the president with recommendations, which could include new tariffs that would override earlier reciprocal tariffs recently introduced.