SECTION 232 PROCESSED CRITICAL MINERALS INVESTIGATION INITIATES TRADE NEGOTIATIONS

Yesterday, the White House issued a proclamation directing the U.S. Department of Commerce and the U.S. Trade Representative to begin negotiations with trading partners concerning imports of processed critical minerals and their derivative products. The action follows a completed Section 232 investigation, which concluded that current import conditions pose a risk to U.S. national security. No tariffs or import restrictions take effect at this stage. Instead, the proclamation formally places processed critical minerals on an active Section 232 policy track, signaling increased regulatory attention rather than an immediate change in compliance.

The Section 232 review concluded that U.S. reliance on imported processed critical minerals, particularly at the refining and processing stages, creates strategic vulnerabilities across defense and commercial supply networks. While some domestic mining capacity exists, limited U.S. processing capability continues to drive downstream import dependence. The investigation found that declining domestic production, concentrated foreign processing capacity, and sustained market volatility weaken industrial resilience and increase exposure to supply disruption.

Rather than imposing immediate trade remedies, the proclamation directs the Department of Commerce and the U.S. Trade Representative to negotiate agreements with trading partners to address the identified national security risks. These negotiations may consider trade conditions aimed at stabilizing supply and mitigating dependency. The proclamation establishes a 180-day period for progress updates and authorizes continued monitoring of imports as negotiations proceed.

No. The proclamation does not impose tariffs, quotas, or other import restrictions at this time. Any future trade remedies would depend on the outcome of negotiations and subsequent determinations under Section 232 authority.

The Department of Commerce will continue monitoring imports of processed critical minerals and their derivative products while negotiations proceed. The Administration retains authority to pursue additional actions under Section 232 if negotiations do not adequately address the identified vulnerabilities. Any further measures would be accompanied by additional guidance.