U.S. President Donald Trump on Tuesday ordered a trade-related probe into the risks to U.S. national security from reliance on processed critical minerals and their derivatives. The order directs U.S. Commerce Secretary Howard Lutnick to conduct a probe under Section 232 of the U.S.’s Trade Expansion 1962 and to produce recommendations on strengthening domestic production and reducing dependence on foreign suppliers.
Any Section 232 tariffs that are the result of the critical mineral probe would replace the April 2 reciprocal tariffs, a White House ‘fact sheet’ on the probe said. Mr. Trump imposed a universal 10% tariff on all goods coming into the U.S, with higher rates for certain countries which ran surpluses in goods trade with the U.S. Mr. Trump had already imposed steel and aluminium tariffs under Section 232 in his first term.
In describing the basis for the probe, the White House note singles out China, the largest extractor and producer or rare earth minerals. Beijing and Washington are in the midst of a trade skirmish and rounds of tit-for-tat tariffs which has resulted in a general tariff rate of 145% for Chinese goods entering the US and 125% for American goods entering China. Two days after Mr. Trump’s ‘ Liberation Day’ tariff announcement on April 2, China had suspended the export of a range of rare earth metals and magnets.
Beijing was attempting “choke off supplies of components central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world,” the White House note said.
“China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions,” the ‘fact sheet’ notes.
A White House official clarified this was not the announcement of a new rate but the result of aggregating existing and recently announced tariffs.
“…The reciprocal tariff adds onto fentanyl tariffs and then onto existing Section 301 tariffs from the first Trump administration and the Biden administration – which range from about 7.5% to 100% – depending on the product,” the official told The Hindu via email, citing electric vehicles and syringes as an example of Chinese products that have outstanding Section 301 tariffs of 100%.
“So those products from China are hit with a total tariff of around 245% after you factor in the fentanyl tariff and reciprocal tariff rates, from which neither product is excluded,” the official said.
Published – April 16, 2025 11:07 pm IST
