U.S. Scrutinizes Critical Mineral Imports, Weighing National Security Against Trade Risks

The United States is taking a hard look at its dependence on foreign critical minerals, materials vital to everything from fighter jets to electric car batteries. On April 15, 2025, President Donald Trump signed an executive order directing the Commerce Department to investigate whether importing these minerals threatens national security. The move comes as global trade tensions flare, with nations like China tightening control over these scarce resources.

Critical minerals, such as rare earth elements, lithium, and graphite, are the backbone of modern technology and defense systems. They power advanced electronics, guide missiles, and drive the clean energy revolution. Yet, the U.S. relies heavily on imports, particularly from China, which refines about 90% of the world’s rare earths. This dependence has raised alarms about supply chain vulnerabilities, especially as geopolitical rivalries intensify.

The executive order invokes Section 232 of the Trade Expansion Act of 1962, a tool used to assess whether imports harm national security. The Commerce Department will examine supply chain risks, foreign market distortions, and the economic toll of reliance on overseas suppliers. A report, due later this year, will recommend steps to boost domestic production and reduce foreign dependence, potentially including tariffs or other trade measures.

For many Americans, the issue feels distant yet urgent. A disruption in mineral supplies could spike the cost of everyday goods like smartphones or cars, while defense contractors worry about delays in building critical equipment. The investigation signals a broader push to reshape U.S. trade policy, but it also risks escalating conflicts with trading partners.

The U.S. move arrives amid a turbulent trade landscape. China, a dominant player in critical minerals, recently suspended exports of six heavy rare earth metals and restricted others, citing national security. This followed U.S. tariff hikes, including a 245% levy on Chinese imports after Beijing retaliated against earlier U.S. trade actions. The tit-for-tat measures have sent shockwaves through industries like automotive, aerospace, and semiconductors, which rely on these materials.

The economic stakes are high. Tariffs and export controls have already driven up costs for U.S. manufacturers. For example, new auto tariffs could add $3,000 to the price of a U.S.-made vehicle, with even steeper increases for cars from Canada or Mexico. Economists warn that inflation from these disruptions could shave 0.6% off U.S. GDP growth in 2025, with households facing an extra $1,300 in annual costs. Canadian households, caught in the crossfire, could see costs rise by $1,900.

China’s export controls are not outright bans but a strategic squeeze, requiring special licenses that create uncertainty for global manufacturers. Companies are scrambling to secure stockpiles, but reserves vary, and some may not last long. The U.S. defense sector, which uses minerals like neodymium for F-35 jets and gallium for electronic warfare systems, faces particular risks. A prolonged disruption could delay production and weaken military readiness.

Yet, not all perspectives align on the solution. Some industry leaders argue that tariffs protect U.S. interests by encouraging domestic production. Others, including manufacturers reliant on global supply chains, warn that trade barriers raise costs and stifle innovation. The debate reflects a deeper tension between security-driven protectionism and the realities of a globalized economy.

Reducing U.S. dependence on foreign minerals is easier said than done. Mining projects in the U.S. often take 15 to 20 years to reach full production due to strict environmental regulations, legal challenges, and complex permitting processes. Refining, the process of turning raw minerals into usable materials, is even tougher. The U.S. lacks the infrastructure to compete with China’s decades-long dominance, and building it requires massive investment.

The federal government is exploring ways to jumpstart domestic production. A proposed $20 to $40 billion initiative over the next decade aims to fund refining and smelting facilities. Other plans include requiring federally funded projects to use U.S.-processed minerals and deepening trade ties with allies like Canada and Australia. Partnerships like the Minerals Security Partnership and AUKUS are laying the groundwork for joint investment and supply agreements.

Still, hurdles remain. Private companies hesitate to invest in refining without government backing, as military demand alone cannot sustain the industry. Environmental concerns also complicate mining expansion, with communities often opposing new projects over pollution risks. Some experts advocate for recycling and substitution technologies to ease demand, but these are years away from scalability.

The U.S. is also looking abroad for alternatives. A recent agreement with Ukraine, rich in lithium and titanium, aims to secure new supplies, but negotiations are fraught amid the ongoing Russia-Ukraine conflict. Resource-rich nations want security guarantees and fair terms, adding layers of complexity to these deals. For now, the U.S. remains caught between immediate needs and long-term goals.

The investigation into critical mineral imports marks a pivotal moment for U.S. trade and security policy. It underscores the delicate balance between protecting national interests and navigating a web of global economic ties. While the push for domestic production could strengthen resilience, it risks further straining relations with trading partners and driving up costs for consumers and businesses. The Commerce Department’s findings will likely shape the debate, offering a clearer picture of the trade-offs involved.

For everyday Americans, the outcome will ripple beyond policy debates. A secure supply of critical minerals could stabilize industries and create jobs, but missteps could lead to higher prices and economic uncertainty. As the U.S. charts its course, the world watches, aware that the struggle for these obscure materials could redefine global power and prosperity in the years to come.