Trump Threatens New Tariffs on Critical Minerals, Escalating U.S.–China Trade Tensions

President Donald Trump has issued a fresh warning of potential tariffs on critical minerals, escalating the U.S.–China trade standoff and potentially opening a new front in the ongoing global trade conflict. In a new executive order signed Tuesday, Trump directed the U.S. Department of Commerce to investigate the country’s supply chains for critical minerals and explore strategies to increase domestic production and reduce reliance on foreign sources—especially adversarial nations like China.

The executive order signals a renewed focus on economic nationalism and supply chain security. It authorizes the investigation under Section 232 of the Trade Expansion Act of 1962, a tool Trump has frequently used in the past to justify tariffs on various goods, including steel, aluminum, and autos. Any resulting measures could include new tariffs on imported critical minerals, though the order also leaves room for reciprocal tariffs to be adjusted—potentially lowered—depending on strategic needs.

“President Trump recognizes that an overreliance on foreign critical minerals and their derivative products could jeopardize U.S. defense capabilities, infrastructure development, and technological innovation,” the executive order states.

The move follows rising concerns in Washington over China’s dominance in the global supply chain for rare earth elements and other critical materials used in electric vehicles, semiconductors, energy production, defense systems, and advanced technology. The Financial Times recently reported that the White House was also considering a stockpiling strategy for metals found in Pacific seabed deposits as part of a broader push to secure resources critical to national security and economic competitiveness.

This latest executive order comes just weeks after Trump’s “liberation day” tariffs sparked volatility in global markets, with analysts warning that an escalating economic rift with China could tip the global economy toward recession.

China, for its part, has already ramped up its own economic pressure tactics. Beijing recently suspended exports of several heavy rare earth elements and magnets essential for military and high-tech industries. In late 2023, China also banned the export of rare earths processing equipment to the U.S., part of a growing toolkit of export controls aimed at retaliating against American efforts to decouple from Chinese supply chains.

China has further expanded restrictions on minerals like gallium, germanium, antimony, and graphite—materials with both military and industrial applications. The White House said these measures underscore the vulnerability of U.S. industries and national security to foreign control over supply chains.

Analysts warn that the U.S. is entering a new phase of the trade conflict—one focused on strategic resources rather than just manufactured goods. “Instead of fighting tariffs with tariffs, Beijing has significantly expanded its coercive tool kit,” wrote China experts Evan Medeiros and Andrew Polk in a recent article in The Washington Quarterly.

While some of the initiatives to reduce reliance on China began during the Biden administration, Trump’s latest move marks a more aggressive stance. Whether the executive order results in new tariffs or more targeted economic measures remains to be seen, but it adds to growing fears of an intensified minerals trade war that could impact sectors from auto manufacturing to clean energy.

At stake is not only market stability but the long-term direction of global supply chains—and America’s ability to remain competitive in critical technology sectors.