Ensuring National Security and Economic Resilience Through Section 232 Actions on Processed Critical Minerals and Derivative Products

E.O. 14272
April 2025
90 Fed. Reg. 16437 (Apr. 18, 2025)

Ensuring National Security and Economic Resilience Through Section 232 Actions 
on Processed Critical Minerals and Derivative Products

               By the authority vested in me as President by the 
               Constitution and the laws of the United States of 
               America, including the Trade Expansion Act of 1962, as 
               amended (19 U.S.C. 1862) (the ``Act''), it is hereby 
               ordered:

               Section 1. Policy. A strong national defense depends on 
               a robust economy and price stability, a resilient 
               manufacturing and defense industrial base, and secure 
               domestic supply chains. Critical minerals, including 
               rare earth elements, in the form of processed minerals 
               are essential raw materials and critical production 
               inputs required for economic and national security. 
               Critical mineral oxides, oxalates, salts, and metals 
               (processed critical minerals), as well as their 
               derivative products--the manufactured goods 
               incorporating them--are similarly foundational to 
               United States national security and defense.

               But processed critical minerals and their derivative 
               products face significant global supply chain 
               vulnerabilities and market distortions due to reliance 
               on a small number of foreign suppliers. These 
               vulnerabilities and distortions have led to significant 
               United States import dependencies. The dependence of 
               the United States on imports and the vulnerability of 
               our supply chains raises the potential for risks to 
               national security, defense readiness, price stability, 
               and economic prosperity and resilience.

               Processed critical minerals and their derivative 
               products are essential for economic security and 
               resilience because they underpin key industries, drive 
               technological innovation, and support critical 
               infrastructure vital for a modern American economy. 
               They are key building blocks of our manufacturing base 
               and foundational to sectors ranging from transportation 
               and energy to telecommunications and advanced 
               manufacturing. These economic sectors are, moreover, 
               foundational to America's national security.

               Processed critical minerals and their derivative 
               products are essential for national security because 
               they are foundational to military infrastructure, 
               energy infrastructure, and advanced defense systems and 
               technologies. They are key building blocks of our 
               defense industrial base and integral to applications 
               such as jet engines, missile guidance systems, advanced 
               computing, radar systems, advanced optics, and secure 
               communications equipment.

               The United States manufacturing and defense industrial 
               bases remain dependent on foreign sources for processed 
               critical mineral products. Many of these foreign 
               sources are at risk of serious, sustained, and long-
               term supply chain shocks. Should the United States lose 
               access to processed critical minerals from foreign 
               sources, the United States commercial and defense 
               manufacturing base for derivative products could face 
               significant shortages and an inability to meet demand.

               Associated risks arise from a variety of factors. 
               First, global supply chains are prone to disruption 
               from geopolitical tensions, wars, natural disasters, 
               pandemics, and trade conflicts.

               Second, major global foreign producers of processed 
               critical minerals have engaged in widespread price 
               manipulation, overcapacity, arbitrary export 
               restrictions, and the exploitation of their supply 
               chain dominance to distort world markets and thereby 
               gain geopolitical and economic leverage over
               the United States and other competitors that depend on 
               processed critical minerals to manufacture derivative 
               products essential to their economic and national 
               security and national defense. Therefore, the import 
               dependence of the United States on processed critical 
               minerals from foreign sources may pose a serious 
               national security risk to the United States economy and 
               defense preparedness.

               Third, the risks arising from America's import 
               dependence on processed critical minerals also extend 
               to derivative products that are integral to the United 
               States economy and economic and national security. For 
               the United States to manufacture derivative products, 
               it must have ready access to an affordable, resilient, 
               and sustainable supply of processed critical minerals. 
               Simultaneously, a resilient and sustainable 
               manufacturing base for derivative products is vital to 
               creating a stable demand base for processed critical 
               minerals. Both must coexist to ensure economic 
               stability and national security.

               Finally, overreliance on a small number of geographic 
               regions amplifies the risks posed by geopolitical 
               instability and regional disruptions.

               In light of the above risks and realities, an 
               investigation under section 232 of the Act (section 
               232) is necessary to determine whether imports of 
               processed critical minerals and their derivative 
               products threaten to impair national security.

               Sec. 2. Definitions. As used in this order:

                   (a) The term ``critical minerals'' means those 
               minerals included in the ``Critical Minerals List'' 
               published by the United States Geological Survey (USGS) 
               pursuant to section 7002(c) of the Energy Act of 2020 
               (30 U.S.C. 1606) at 87 FR 10381, or any subsequent such 
               list. The term ``critical minerals'' also includes 
               uranium.
                   (b) The term ``rare earth elements'' means the 17 
               elements identified as rare earth elements by the 
               Department of Energy (DOE) in the April 2020 
               publication titled ``Critical Materials Rare Earths 
               Supply Chain.'' The term also includes any additional 
               elements that either the USGS or DOE determines in any 
               subsequent official report or publication should be 
               considered rare earth elements.
                   (c) The term ``processed critical minerals'' refers 
               to critical minerals that have undergone the activities 
               that occur after critical mineral ore is extracted from 
               a mine up through its conversion into a metal, metal 
               powder or a master alloy. These activities specifically 
               occur beginning from the point at which ores are 
               converted into oxide concentrates; separated into 
               oxides; and converted into metals, metal powders, and 
               master alloys.
                   (d) The term ``derivative products'' includes all 
               goods that incorporate processed critical minerals as 
               inputs. These goods include semi-finished goods (such 
               as semiconductor wafers, anodes, and cathodes) as well 
               as final products (such as permanent magnets, motors, 
               electric vehicles, batteries, smartphones, 
               microprocessors, radar systems, wind turbines and their 
               components, and advanced optical devices).

               Sec. 3. Section 232 Investigation. (a) The Secretary of 
               Commerce shall initiate an investigation under section 
               232 to determine the effects on national security of 
               imports of processed critical minerals and their 
               derivative products.

                   (b) In conducting the investigation described in 
               subsection (a) of this section, the Secretary of 
               Commerce shall assess the factors set forth in 19 
               U.S.C. 1862(d), labeled ``Domestic production for 
               national defense; impact of foreign competition on 
               economic welfare of domestic industries,'' as well as 
               other relevant factors, including:

(i) identification of United States imports of all processed critical 
minerals and derivative products incorporating such processed critical 
minerals;

(ii) the foreign sources by percent and volume of all processed critical 
mineral imports and derivative product imports, the specific types of
risks that may be associated with each source by country, and those source 
countries deemed to be of significant risk;

(iii) an analysis of the distortive effects of the predatory economic, 
pricing, and market manipulation strategies and practices used by countries 
that process critical minerals that are exported to the United States, 
including the distortive effects on domestic investment and the viability 
of United States production, as well as an assessment of how such 
strategies and practices permit such countries to maintain their control 
over the critical minerals processing sector and distort United States 
market prices for derivative products;

(iv) an analysis of the demand for processed critical minerals by 
manufacturers of derivative products in the United States and globally, 
including an assessment of the extent to which such manufacturers' demand 
for processed critical minerals originates from countries identified under 
subsections (b)(ii) and (b)(iii) of this section;

(v) a review and risk assessment of global supply chains for processed 
critical minerals and their derivative products;

(vi) an analysis of the current and potential capabilities of the United 
States to process critical minerals and their derivative products; and

(vii) the dollar value of the current level of imports of all processed 
critical minerals and derivative products by total value and country of 
export.

                   (c) The Secretary of Commerce shall, consistent 
               with applicable law, proceed expeditiously in 
               conducting the investigation as follows:

(i) Within 90 days of the date of this order, the Secretary of Commerce 
shall submit for internal review and comment a draft interim report to the 
Secretary of the Treasury, the Secretary of Defense, the United States 
Trade Representative, the Assistant to the President for Economic Policy, 
and the Senior Counselor to the President for Trade and Manufacturing.

(ii) Comments to the Secretary of Commerce from the officials identified in 
subsection (c)(i) of this section shall be provided within 15 days of 
submission of the draft interim report described in subsection (c)(i) of 
this section.

(iii) The Secretary of Commerce shall submit a final report and 
recommendations to the President within 180 days of the investigation's 
commencement.

                   (d) In considering whether to make recommendations 
               for action or inaction pursuant to section 232(b) of 
               the Act (19 U.S.C. 1862(b)), the Secretary of Commerce 
               shall consider:

(i) the imposition of tariffs as well as other import restrictions and 
their appropriate levels;

(ii) safeguards to avoid circumvention and any weakening of the section 232 
measures;

(iii) policies to incentivize domestic production, processing, and 
recycling; and

(iv) any additional measures that may be warranted to mitigate United 
States national security risks, as appropriate, under the President's 
authority pursuant to the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.).

               Sec. 4. General Provisions. (a) Nothing in this order 
               shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or 
the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget 
relating to budgetary, administrative, or legislative proposals.

                   (b) This order shall be implemented consistent with 
               applicable law and subject to the availability of 
               appropriations.

                   (c) This order is not intended to, and does not, 
               create any right or benefit, substantive or procedural, 
               enforceable at law or in equity by any party against 
               the United States, its departments, agencies, or 
               entities, its officers, employees, or agents, or any 
               other person.
               
                DONALD J. TRUMP

               THE WHITE HOUSE,

                   April 15, 2025.