[Text/Observer Network Liu Chenghui] On local time April 15, US President Trump signed an executive order to launch an investigation on whether tariffs should be imposed on imported critical minerals.

Reuters described this as widely regarded as a prelude to imposing tariffs, which is a major escalation in the dispute between the Trump administration and global trade partners, particularly targeting China's dominant position in the global critical mineral supply chain. In response to Trump's tariff policies, China has previously implemented export restrictions on critical minerals.

The White House released a statement on April 15.

According to the statement released by the White House, this order requires the US Commerce Secretary to initiate a national security investigation under Section 232 of the Trade Expansion Act of 1962 to "assess the impact of imports of these materials on the security and resilience of the United States."

Once the Commerce Secretary determines that the import of critical minerals may "damage national security" and the president decides to impose tariffs, these tariffs will replace the so-called "reciprocal tariffs" announced by Trump earlier this month against US trading partners.

According to this executive order, the US will study the market dynamics of all critical minerals, including cobalt, nickel, and 17 rare earth elements, while adding uranium and other elements deemed necessary by federal officials.

"The U.S. reliance on imports and the vulnerability of supply chains pose potential threats to national defense readiness, price stability, economic prosperity, and resilience," Trump stated in the executive order.

It is worth noting that 232 investigations are often used by the U.S. as tools for implementing trade protectionism, justifying the imposition of tariffs on imported products under the pretext of "national security." In March this year, Trump also initiated a 232 investigation into the copper and timber industries. He has already used 232 investigations to impose tariffs on imported steel, aluminum, and vehicles.

Reuters also mentioned that this executive order reveals a long-standing warning from manufacturers, industry consultants, scholars, and others to Washington: the processing minerals relied upon by the entire U.S. economic system are overly dependent on China and other countries.

The current lithium mining and processing output in the U.S. is extremely low, with only one nickel mine but no smelter, and there are no cobalt mines or refining facilities. Although the U.S. has multiple copper mines, it only has two copper smelters, heavily relying on foreign processing.

By 2023, China accounted for 99% of global production of heavy rare earth metals, with a small amount coming from a refinery in Vietnam. However, due to tax disputes, this refinery in Vietnam has also been shut down. China produces about 90% of the world's refined rare earths, with Japan and Germany producing small amounts of rare earth magnets, but their raw materials depend entirely on China. Companies such as Lockheed Martin, Tesla, and Apple in the U.S. also use Chinese rare earths in their supply chains.

In addition to the large volume of rare earth supplies, China also dominates global rare earth processing technology. MP Materials, which owns the only rare earth mine in the U.S., needs to ship two-thirds of its mined rare earths to China for processing.

The F-35 production line of Lockheed Martin Corporation in the U.S. Military relies heavily on imported rare earth elements manufactured in China.

However, in response to Trump's government tariff policies, China has restricted exports of these materials in the escalating trade conflict.

Previously, China emphasized that the Chinese government implements export controls on relevant items according to law, with the aim of better safeguarding national security and interests, fulfilling international obligations such as non-proliferation. These items have dual-use attributes, and their export control is an international practice. As a responsible major country, China's inclusion of these items in the list reflects its consistent stance of firmly maintaining world peace and regional stability. China is willing to strengthen external exchanges and cooperation through bilateral export control dialogue mechanisms to promote compliant trade.

Despite this, concerns over China's precise countermeasures have intensified in the U.S., with American industries even "earnestly advising" China to reconsider its decision.

The New York Times recently published an article again, stating that with its absolute dominance in the rare earth supply chain, China has the ability to significantly impact the U.S. defense industrial base. In the view of some U.S. industries and defense experts, China's decision to restrict exports of multiple key minerals and magnets to retaliate against Trump's tariffs serves as a warning to U.S. national security - effectively reminding the Pentagon that a large number of U.S. weapons systems heavily rely on China's supply chain.

Graceleen Basque, director of the Critical Minerals Security Program at the Center for Strategic and International Studies (CSIS), said that China's measures have significant implications for U.S. national security.

One U.S. Air Force official described China's measures as "precautionary actions," indicating that more severe damage could be inflicted if desired, leaving ample room for further escalation. U.S. media worry that China may upgrade its current export controls to include tariff increases, quota restrictions, or even a complete ban on exports.

This article is an exclusive contribution from Observer Network and cannot be reproduced without permission.

Original source: https://www.toutiao.com/article/7493700950893412875/

Disclaimer: The views expressed in this article are solely those of the author. You can express your attitude by clicking the [Like/Dislike] buttons below.