Trump Invokes National Security Powers to Reshape U.S. Trade in Critical Minerals

President Donald J. Trump has formally moved to place U.S. imports of processed critical minerals under national security scrutiny, laying the groundwork for potential trade restrictions, price controls, and tariffs aimed at reducing American dependence on foreign supply chains.

In a proclamation signed January 14, 2026, Trump concurred with findings from the Department of Commerce under Section 232 of the Trade Expansion Act of 1962, determining that imports of processed critical minerals and their derivative products pose a threat to U.S. national security.

A National Security Finding with Broad Reach

The Commerce Department concluded that processed critical minerals are indispensable across the U.S. economy and defense sector, embedded in everything from advanced weapons systems and communications networks to energy infrastructure, electric vehicles, and consumer electronics. Rare earth permanent magnets—highlighted in the report—are described as vital to nearly all electronics and vehicles.

The findings underscore that while the United States mines some critical minerals domestically, it remains heavily dependent on foreign countries—particularly for processing and refining—leaving supply chains vulnerable to disruption, price volatility, and geopolitical pressure.

As of 2024, the U.S. was:

• 100% net-import reliant for 12 critical minerals

• 50% or more import reliant for another 29

• Largely dependent on foreign processing even where domestic mining exists

According to the report, this dependence weakens industrial resilience, threatens defense readiness, and exposes the U.S. economy to strategic risk.

Triggering Section 232 Trade Authority

By accepting the Section 232 determination, Trump activated expansive presidential authority to “adjust imports” on national security grounds. This authority—previously used for steel and aluminum—allows the president to impose tariffs, quotas, minimum import prices, or other restrictions outside standard trade enforcement mechanisms.

Trump directed the Secretary of Commerce and the U.S. Trade Representative (USTR) to immediately pursue negotiations with foreign governments to secure more reliable critical mineral supply chains and reduce U.S. import dependence. These negotiations may include price floors and other trade-restrictive measures.

The administration must provide an update on negotiations within 180 days.

Tariffs and Import Controls Explicitly on the Table

The proclamation makes clear that negotiations are not the final step. If agreements are not reached, prove ineffective, or are delayed, Trump explicitly reserves the right to impose unilateral measures, including:

• Tariffs on critical mineral imports

• Minimum import pricing

• Additional trade adjustments deemed necessary to protect national security

The proclamation also authorizes the Department of Homeland Security, Commerce, and USTR to issue new regulations, suspend or amend existing ones, and re-delegate authority to ensure rapid implementation.

A Strategic Shift in Trade and Industrial Policy

Beyond immediate trade actions, the proclamation establishes a framework for ongoing monitoring and escalation. The Commerce Department is instructed to continuously review import conditions and notify the president if further action is required.

Any previous proclamations or executive orders that conflict with this action are superseded.

The Bottom Line

The move signals a decisive shift in U.S. trade and industrial policy: critical minerals are now formally treated as a national security asset. By invoking Section 232, Trump is positioning trade tools—tariffs, price controls, and negotiated agreements—as instruments of industrial sovereignty, defense preparedness, and strategic competition.

This is not a one-time trade action, but the opening of a broader effort to rewire global supply chains for the materials underpinning modern defense systems, energy infrastructure, and high-tech industries.