Ensuring National Security and Economic Resilience Through Section 232 Actions on Processed Critical Minerals and Derivative Products
This Executive Order (No. 14272, April 15, 2025) directs the Secretary of Commerce to open a formal investigation under section 232 of the Trade Expansion Act of 1962 into whether imports of "processed critical minerals" and products that incorporate them ("derivative products") threaten to impair U.S. national security. It defines the covered materials (including the USGS Critical Minerals List, rare earth elements, and uranium) and requires Commerce to analyze sources, supply-chain risks, market-distorting practices by foreign producers, U.S. processing capability, and the dollar value of imports. The investigation must produce an interim draft within 90 days for interagency comment and a final report with recommendations to the President within 180 days. The practical effect is to create a formal process that could lead to trade measures (for example, tariffs, quotas, or other import restrictions), safeguards against circumvention, and policies to boost domestic production, processing, and recycling of these minerals. The order is aimed at strengthening defense readiness, supply-chain resilience, and economic stability but could also raise costs for downstream industries, affect international trade relationships, and prompt legal or diplomatic responses from trading partners.
Key Points
- 1Initiates a section 232 investigation: Commerce must determine whether imports of processed critical minerals and derivative products impair national security, using statutory 232 factors plus additional analyses specified in the order.
- 2Definitions: "Critical minerals" are those on the USGS Critical Minerals List (plus uranium); "rare earth elements" follow DOE/USGS listings; "processed critical minerals" means materials from oxide concentrates through conversion into metals, powders, or master alloys; "derivative products" are goods that incorporate those processed minerals (from semiconductor wafers to batteries, magnets, EVs, radar, wind turbines, etc.).
- 3Required analyses: identify U.S. imports and their foreign sources (percent/volume), assess country-specific risks, examine market-distorting practices (e.g., price manipulation, overcapacity, export restrictions), evaluate demand from U.S. and global manufacturers, review global supply chains, and assess U.S. processing capabilities and import dollar values.
- 4Timeline and interagency review: draft interim report due within 90 days to Treasury, Defense, USTR, and White House trade/economic advisors; those officials have 15 days to comment; final report and recommendations to the President within 180 days.
- 5Potential remedies and policy options: Commerce should consider tariffs and other import restrictions, anti-circumvention safeguards, policies to incentivize U.S. production/processing/recycling, and, if warranted, other measures under the International Emergency Economic Powers Act (IEEPA). The order also preserves existing agency authorities and is subject to law and available appropriations.