Trump's Tariff Tactics Target Critical Minerals Dependency

President Donald Trump has ordered a probe into potential tariffs on U.S. critical minerals imports, aiming to reduce dependency on China. The investigation, led by Commerce Secretary Howard Lutnick, will examine vulnerabilities in the supply chain and explore domestic production and processing solutions.

President Donald Trump escalated his trade war on Tuesday by ordering an investigation into potential tariffs on imports of critical minerals essential to the U.S. economy, a move signaling a push to diminish America's reliance on China. The initiative comes amidst rising concerns from industry and policymakers about national security implications linked to mineral shortages.

The President's order directs Commerce Secretary Howard Lutnick to launch a national security review under Section 232 of the Trade Expansion Act of 1962. This probe, set to conclude within 180 days, will address how supply disruptions, due largely to foreign geopolitical maneuvers, could affect defense readiness and economic stability.

In an effort to bolster domestic capability, the investigation will evaluate current processing vulnerabilities across minerals like cobalt, nickel, rare earths, and uranium. Meanwhile, strategic partnerships with nations like Australia may be strengthened, as these allies vie for tariff exemptions. U.S. industry leaders caution, however, that realizing new domestic mines and processing facilities could span several years, amplifying urgency among stakeholders.

(With inputs from agencies.)