U.S. President Donald Trump has signed an executive order directing the Secretary of Commerce to launch an investigation into the country’s heavy reliance on imported critical minerals.
The order, issued on Tuesday, highlights concerns over the vulnerability of U.S. supply chains and their potential risks to national security, defense readiness, and economic stability.
The executive order stresses that the dependence on imports for essential minerals, particularly rare earth elements (REEs), has raised significant security and economic concerns. “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 states.
This move is seen as part of an effort to break China’s dominance in the critical minerals sector, which is vital for the production of advanced technologies, defense systems, and renewable energy products. China currently controls 69% of global rare earth production and holds 49% of the world’s estimated reserves, according to the U.S. Geological Survey’s 2024 data.
The executive order also follows Trump's March 20 decision to encourage both public and private investments aimed at boosting the U.S. production of critical minerals. The order outlines the establishment of financing and credit mechanisms to enhance the country’s energy and critical minerals sectors.
This new directive builds on previous actions, including the tariffs imposed by the Trump administration in 2018 on Chinese goods, which led to retaliatory measures from Beijing, including tighter controls over the export of rare earths. The latest restrictions were implemented by China on April 4, just days after new U.S. tariffs were announced.
As global demand for critical minerals continues to rise, the U.S. is focusing on reducing its dependency on China and securing a more resilient and self-sufficient supply chain. The investigation into mineral imports is part of broader efforts to strengthen U.S. economic and security positions in an increasingly competitive global market.
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