President Donald Trump launched a new process to secure critical mineral imports, citing national security concerns.
The president signed an order on critical minerals Wednesday, following a Commerce Department Section 232 investigation of the Trade Expansion Act launched last April. The investigation concluded that the United States’s reliance on foreign sources of critical minerals, along with the lack of a sufficient and reliable supply chain, threatens national security.
The order is the latest effort by the administration in its race to boost the supply of minerals to reduce reliance on China, which has used its control over the sector as leverage in trade negotiations and conversations about Taiwan.
The White House order said “[a]s of 2024, the United States was 100 percent net-import reliant for 12 critical minerals, and 50 percent or greater net-import reliant for a further 29 critical minerals.”
Critical minerals are necessary for technology-based applications in both the defense and energy sectors, ranging from fighter aircraft and munitions to surveillance systems and energy infrastructure.
Trump’s order directs the Office of the U.S. Trade Representative and the Department of Commerce to begin negotiations with trading partners to address national security concerns associated with importing critical minerals. The administration will work on setting price floors and will consider further trade actions if necessary.
It added that the president could take additional action if agreements on critical minerals are not established within 180 days or if they are not implemented effectively.
White House Staff Secretary Will Scharf said at a signing ceremony Wednesday at the White House that the order creates “a mechanism, a process” for establishing a secure international supply chain for critical minerals.
Over the past year, the Trump administration has sought to boost the domestic critical mineral industry in an effort to reduce its reliance on China, as China has leveraged its market control against the U.S. and other countries.
According to the U.S. Geological Survey, between 2020 to 2023, the U.S. imported nearly 56% of its rare earth compounds and metals from China.
China has imposed several restrictions on the export of rare earth materials to the U.S. In November, Trump reached an agreement with China to lift some export controls for a year, but restrictions on other rare earths remain. However, if additional tariffs are placed on Chinese imports, that may undermine the U.S.-China agreement.
Recently, China has imposed export restrictions on rare earths and magnets on Japanese companies, following Japan’s comments suggesting it would deploy its military if China uses force to try to seize Taiwan.
The U.S. this week hosted the Group of Seven, Australia, and India to discuss critical minerals amid China’s grip on the industry.
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The Trump administration has looked abroad to other partners to diversify its supply and has entered into agreements with countries like Malaysia, Thailand, Cambodia, and Australia. The administration has even gone as far as partnering with and taking direct ownership in critical minerals companies to help boost domestic production.
