Trump Orders Section 232
Negotiations to Secure U.S. Critical Minerals Supply Chains
President
Donald J. Trump has directed the U.S. Secretary of Commerce and the U.S. Trade
Representative to negotiate agreements with trading partners to adjust imports
of processed critical minerals and their derivative products (PCMDPs) under
Section 232 of the Trade Expansion Act of 1962. The move aims to address
national security risks arising from U.S. dependence on foreign sources of
critical minerals.
The
Administration will work with allies to promote price floors for PCMDPs and
strengthen resilient, diversified supply chains. The President may impose
additional measures—including import restrictions—if agreements are not
concluded within 180 days, are not implemented, or prove ineffective.
The
action follows a Commerce Department investigation finding that current import
levels threaten national security, amid declining U.S. production and rising
demand for critical minerals essential to defense
systems, energy infrastructure, and advanced technologies. The proclamation
underscores the need to expand domestic mining and processing capacity to
reduce foreign reliance.
The
initiative builds on President Trump’s broader agenda to secure critical
industries, including executive actions to accelerate mineral projects, expand
access to offshore and Alaskan resources, and strengthen partnerships with
allies such as Australia, Japan, Saudi Arabia, Malaysia, and Thailand to
counter non-market practices and reduce dependence on adversarial suppliers.
Fact Sheet: President Donald
J. Trump Directs Negotiations to Adjust Imports of Processed Critical Minerals and
Their Derivative Products into the United States
SUPPORTING AMERICAN INDUSTRY: Today, President Donald J. Trump
signed a Proclamation pursuant to Section 232 of the Trade Expansion Act of 1962
(Act) ordering the U.S. Secretary of Commerce and U.S. Trade Representative to jointly
negotiate agreements with trading partners to address the threatened impairment
of national security with respect to imports of processed critical minerals and
their derivative products (PCMDPs) from any country.
·
In negotiating, the Administration
will, working with our allies, promote the adoption of price floors for trade in
PCMDPs.
·
The Secretary of Commerce will
inform the President of any circumstances that might indicate the need for further
action under Section 232 with respect to PCMDPs.
·
The President may also take other
actions he deems necessary to adjust imports of PCMDPs and eliminate the related
threats to national security, including if the agreements directed to be negotiated
are not entered into within 180 days of the proclamation, are not being carried
out, or are ineffective.
ADDRESSING THE THREAT TO NATIONAL SECURITY: President Trump recognizes that PCMDPs are indispensable to almost every
industry, including national defense programs and critical
infrastructure, and recognizes the need to create diverse and more resilient supply
chains to counterbalance the influence of non-market practices by foreign actors.
·
This action follows the Secretary
of Commerce’s completion of a Section 232 investigation, which found that the present
quantities and circumstances of the imports of processed critical minerals and their
derivative products threaten to impair national security.
·
Despite increasing demand, critical
mineral production in the United States has been declining.
·
Weakened domestic production and
a lack of access to secure and reliable supply chains for critical minerals affect
the production of advanced weapons systems, energy infrastructure, and everyday
consumer goods while making America vulnerable to exploitation by foreign actors.
·
It is vital that the United States
have sufficient domestic mining and processing of critical minerals to reduce import
reliance on foreign countries.
BUILDING ON A RECORD OF SECURING CRITICAL INDUSTRIES: President Trump has long recognized that America’s national security and
economic strength depend on securing reliable supplies of critical minerals.
·
In April, President Trump signed
the Executive Order that launched this investigation into the national security
risks posed by U.S. reliance on imported processed critical minerals and their derivative
products.
·
President Trump has also worked
tirelessly to restore American dominance in critical minerals and resources, including
by:
o Unleashing America’s offshore critical minerals and resources.
o Increasing efficiency for federally funded critical mineral projects.
o Approving the Ambler Road Project to enable access to large deposits of critical
minerals located in a currently-inaccessible area of Alaska.
·
While prioritizing domestic production,
today’s action will also build upon the landmark critical minerals
agreements President Trump has secured with key allies and partners, including Australia,
Saudi Arabia, Malaysia, Thailand, Japan, and others, to diversify global supply
chains and reduce dependence on adversarial nations.