US President Donald Trump has issued a sweeping proclamation declaring that American dependence on imported processed critical minerals poses a direct threat to national security, setting the stage for trade negotiations — and possible tariffs — targeting foreign suppliers.
The proclamation follows an October 2025 investigation by the Commerce Department under Section 232 of the Trade Expansion Act, which found that processed critical minerals and their derivative products are being imported “in such quantities and under such circumstances as to threaten to impair the national security of the United States.”
According to the report, these materials are indispensable across the economy and defense sector, underpinning everything from fighter jets and naval ships to energy infrastructure, telecommunications systems and consumer electronics. Rare earth permanent magnets alone are described as vital to nearly all electronics and vehicles.
The Commerce Department concluded that the United States remains dangerously reliant on foreign sources. As of 2024, the country was 100 percent net-import dependent for 12 critical minerals and at least 50 percent reliant for another 29. Even where domestic mining exists, the US often lacks the processing capacity to finish the job, forcing materials overseas for refinement before they are reimported.
That vulnerability extends into the defense supply chain. The report warned that for several key minerals, US military supply chains rely on suppliers from a single foreign country, exposing the Department of War and other sectors to potential disruption, coercion or price shocks.
The findings also point to worsening market instability. Volatile prices have discouraged private investment, driven facility closures and accelerated the decline of domestic mining, processing and manufacturing. At the same time, US demand is surging due to rising military threats and rapid growth in high-tech industries such as artificial intelligence, data centers, nuclear power and advanced energy technologies.
Trump said he agrees with the Commerce Department’s conclusions and directed US trade officials to begin negotiations with foreign governments to secure reliable supplies and reduce import dependence. Those talks could include agreements setting minimum import prices for certain critical minerals.
If negotiations fail or stall, the proclamation leaves the door open to tougher measures. The president signaled he may impose import restrictions, including tariffs, to protect national security if satisfactory agreements are not reached within 180 days.
The Commerce Secretary and the US Trade Representative are ordered to jointly lead the negotiations and report back within six months, while Homeland Security and other agencies are instructed to use their authorities to implement the new policy. Previous proclamations or executive orders that conflict with the new directive are superseded.
The move marks a major escalation in US efforts to reshape global critical minerals supply chains — and underscores how central those materials have become to both economic competitiveness and military readiness.
