April 16, Editor Bian Pure - Local time on Tuesday, US President Donald Trump ordered the US Department of Commerce to conduct a so-called "Section 232 investigation" on critical minerals imported from foreign countries. This is seen as a prelude to imposing tariffs on critical minerals, potentially further escalating the global trade war initiated by the United States.
The White House stated that Trump signed an executive order to investigate the national security risks associated with the United States' dependence on imports of processed critical minerals and their derivative products.
The White House said in a statement that the executive order requires the Secretary of Commerce to initiate a "Section 232" investigation under the Trade Expansion Act of 1962 to "assess the impact of these material imports on the security and resilience of the United States."
If the report submitted by the Secretary of Commerce determines that the import of critical mineral products poses a threat to national security, and the President decides to impose tariffs, any tariff rates imposed under Trump's April 2nd order will replace the current reciprocal tariff rates under "Section 232".
This executive order covers critical minerals including rare earth elements. The White House said that these critical minerals are crucial for the national security and economic recovery of the United States, and are a "key component of the defense industrial base".
The White House said that although the United States possesses some critical minerals, it still imports large amounts, which brings economic and security risks. The Trump administration said that the United States depends on imports for at least 15 critical minerals.
According to relevant laws, the Secretary of Commerce is expected to publish the investigation results within 270 days.
Trump recently hinted that his administration may consider imposing tariffs on critical minerals. Previously, he had imposed tariffs on other specific industries such as steel, aluminum, automobiles, and automotive parts.
Section 232 investigations are often used by the United States as a tool for implementing trade protectionism, imposing tariffs on imported products under the pretext of "national security". On Monday, the Trump administration also announced the initiation of a "Section 232 investigation" on semiconductors and pharmaceuticals.
Last month, Trump invoked emergency powers to increase the capacity of producing critical minerals in the United States - part of a broader effort aimed at accelerating domestic natural resource development and reducing reliance on foreign imports. This executive order aims to provide financing, loans, and other investment support for domestic processing of critical minerals in the United States.
Trump has implemented comprehensive tariffs aimed at boosting American manufacturing and energy production and generating new revenue for the federal government. However, these measures have disrupted markets. People are concerned that Trump's tariffs will lead consumers to face higher prices, disrupt international supply chains, reduce trade, and possibly push the global economy into recession.
At the beginning of this month, Trump signed two executive orders regarding "reciprocal tariffs" at the White House, announcing a 10% "minimum benchmark tariff" for trade partners and higher tariffs for certain trade partners.
Last week, the United States announced a 90-day suspension of high "reciprocal tariffs" on dozens of countries, but the basic 10% tariff would remain in effect to give countries time to negotiate with the Trump administration. However, this suspension did not stop Trump from advancing tariffs on specific industries.
(Bian Pure)
Original source: https://www.toutiao.com/article/7493700745217262118/
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