Trump directs pursuit of critical minerals agreements, not tariffs

US President Donald Trump has instructed federal agencies to pursue critical minerals agreements and not implement tariffs following a national security investigation of processed critical mineral imports and their derivative products, according to a Jan. 14 presidential proclamation.

The Secretary of Commerce launched an investigation on April 22, 2025 to determine the effects on national security of critical mineral imports. Similar investigations, initiated under Section 232 of the Trade Expansion Act, have led to 50% tariffs on steel, aluminum and some copper products.

The investigation found that critical minerals are being imported "in such quantities and under such circumstances as to threaten to impair the national security of the United States," according to the proclamation. It also determined that the US is too reliant on foreign sources for the materials and lacks a secure and reliable supply chain.

The market is experiencing unsustainable price volatility, as well as weakened domestic manufacturing, the proclamation said.

The Commerce Secretary recommended adjusting the imports of critical minerals and urged Trump to negotiate agreements with other countries to ensure a US critical mineral supply chain. This includes import restrictions, such as tariffs, if agreements are not reached, the proclamation says.

"Depending on the outcome of such negotiations, I may consider alternative remedies in the future, including minimum import prices for specific types of critical minerals," Trump said in the proclamation.

Trump directed his administration, including the US Trade Representative and other administration officials, to pursue negotiations with trading partners.

The term "critical minerals" applies to minerals on the "critical minerals list" published by the US Geological Survey. The latest draft list includes 54 elements like samarium, rhodium, gallium, germanium and tungsten, among others.

The US relies solely on imports for many of these materials.

China dominates the global market for critical minerals and their processing. The country is the leading producer of 30 out of 44 critical minerals, according to the Department of Commerce's Bureau of Industry and Security.

Trump also issued a proclamation following a similar national security investigation into semiconductors and placed a 25% tariff on certain advanced computing chips and their derivative products when "such importation does not contribute to the buildout of the United States technology supply chain and the strengthening of domestic manufacturing capacity for derivatives of semiconductors."

Similar to critical minerals, Trump also urged administration officials to pursue negotiations or agreements with trading partners related to imported semiconductors and their derivative products.