US President Trump has signed an Executive Order directing US trade and commerce officials to begin talks with foreign suppliers to secure critical mineral imports, while warning that tariffs or other trade restrictions could follow “if such an agreement is not entered into within 180 days of the date of this proclamation”.
The order comes under Section 232 of the Trade Expansion Act, after a government investigation concluded that current imports of processed critical minerals threaten national security.
Trump said the administration would not impose new tariffs immediately, opting instead for negotiations to adjust import volumes and conditions. However, the proclamation sets a 180-day deadline, after which the US could introduce minimum import prices, quotas, or tariffs if agreements are not reached.
Investigation flags America’s critical mineral import dependence
The Commerce Department’s Section 232 investigation found the US was 100% net-import reliant on 12 critical minerals in 2024 and more than 50% reliant for a further 29, despite some domestic mining activity. The shortfall is most acute in processing and refining, which remains heavily concentrated overseas.
Processed critical minerals and derivative products are used across defence systems, power grids, electric vehicles, electronics and advanced manufacturing, the administration said, making supply disruptions a strategic risk.
China exposure in focus
Officials again pointed to China’s dominant position in global processing of rare earths and other strategic materials as a central vulnerability, particularly after Beijing tightened export controls on several critical inputs over the past year.
Trump said the US would seek alternative overseas supplies and deeper partnerships with allied producers, rather than rely on countries seen as geopolitical rivals.
Price mechanisms and trade risks
The Trump administration says negotiations could include price-based mechanisms, a signal that Washington may attempt to counter what it sees as market distortions from subsidised or state-backed production abroad.
The move coincides with Trump’s decision to extend the national emergency with respect to energy, preserving broad executive authority to address supply risks across energy and mineral markets.
Why it matters
By delaying tariffs, the administration avoids an immediate cost shock to US manufacturers dependent on imported inputs. But the 180-day clock introduces policy risk for exporters and clarity for allied suppliers positioned to benefit from new trade agreements.
