Donald Trump orders investigation on critical minerals, threatens to impose new tariffs
Washington, United States:
US President Donald Trump on Tuesday issued a new order to launch an investigation into imports of critical minerals, rare-earth metals and their derivatives, such as smartphones. If the investigation proves that imports of these minerals pose a threat to US national security, new tariffs could be imposed. The move could deepen an ongoing dispute with Trump’s global trade partners.
What are Critical Minerals?
Critical minerals such as cobalt, lithium, and nickel are elements that are vital to today’s high-tech products. They are used in sectors such as electric vehicles, batteries, smartphones, missile systems, jet engines and advanced computing. Rare-earth metals also fall into this category, which serve as the backbone for defense and energy infrastructure.
What does Trump say?
Trump’s order states that America is currently dependent on many foreign sources that are at risk of “serious, sustained, and long-term supply chain shocks.” This means that if for some reason this foreign supply chain is stopped, then the US can face problems in military, defense readiness and economic stability.
Trump says that this dependence is a big threat to America’s national security. The order says, “This dependence is a challenge for national security, defense readiness, price stability, and economic prosperity.”
China’s role
The biggest focus of this investigation can be on China, because China is a global supplier of rare-earth elements today. China supplies a large part of the key minerals used in smartphones, electric vehicles and renewable energy systems around the world. If the US imposes tariffs on these imports, it could further deteriorate already tense trade relations with China.
Smartphones, EVs could be at risk
The range of investigation includes not just raw minerals, but also products that use these minerals in their production. This means that products like smartphones, electric vehicles, and high-capacity batteries could also be targets.
The move signals a major economic shift in which the US wants to increase its own mineral production and refining capacity so that it is not dependent on any other country.
Market Reaction and Economic Impact
Trump’s previous tariff decisions have created a lot of uncertainty in the market. Investors and multinational companies are confused about when and which sector will be subject to tariffs. This new probe has increased tension among tech companies, automakers and defense manufacturers, as their product components may be directly affected.
Experts believe that if these tariffs are imposed, the cost of these products could increase significantly. Smartphones and electric cars could become more expensive for consumers. Also, companies may have to plan new sourcing strategies, which will be very challenging in the short-term.
Economic Push in the Name of National Security
This is another step of the Trump administration in which it is justifying economic policies in the name of national security. Earlier also Trump had imposed tariffs by starting similar investigations on steel and aluminum imports.
Trump says that if America has to become self-sufficient in its defense and energy needs, then foreign dependency on critical minerals will have to be reduced. Through the order, Trump has also signaled that he wants to bring the rare-earth supply chain under the control of America.
What can happen next?
Currently this is an order of inquiry, but if the investigation concludes that these imports pose a security risk, Trump may impose tariffs or import restrictions on them. This could lead to another major change in the US trade ecosystem.
Conclusion
This new step by Donald Trump reflects America’s long-term strategy in which it wants to increase self-reliance in critical sectors. But its short-term impact will definitely be on global trade tensions, product prices and supply chains. It will now be interesting to see what the result of the investigation is and whether new tariffs are actually imposed or not.
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