President Donald J. Trump has issued an order for an investigation under section 232 of the Trade Expansion Act to determine whether imports of processed critical minerals and their derivative products threaten to impair national security. The executive order highlights the importance of these minerals in maintaining a robust economy, national defense, and secure domestic supply chains.
"Critical minerals, including rare earth elements, in the form of processed minerals are essential raw materials and critical production inputs required for economic and national security," the order states. It further emphasizes that these minerals form the foundation of the United States' manufacturing base and support sectors essential to national security, such as transportation, energy, telecommunications, and advanced manufacturing.
However, the document outlines significant vulnerabilities in global supply chains, which have resulted in the United States' reliance on a limited number of foreign suppliers for processed critical minerals. This reliance poses potential national security risks due to the threat of geopolitical tensions, natural disasters, trade conflicts, and economic manipulation by major foreign producers, the order notes. "The dependence of the United States on imports and the vulnerability of our supply chains raises the potential for risks to national security, defense readiness, price stability, and economic prosperity and resilience."
The order directs the Secretary of Commerce to initiate an investigation under section 232, assessing the effects on national security of importing processed critical minerals and their derivatives. It calls for a detailed examination of import sources, the impacts of foreign economic practices, demand for minerals, current U.S. capabilities, and the dollar value of imports.
The investigation is to be conducted swiftly, with a draft interim report expected within 90 days, followed by a final report with recommendations to the President within 180 days of the investigation's start. As part of these recommendations, the Secretary of Commerce will evaluate potential tariffs, import restrictions, policies promoting domestic production, and other measures to mitigate national security risks.
The order concludes by stating, "Nothing in this order shall be construed to impair or otherwise affect the authority granted by law to an executive department or agency, or the head thereof."
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