President Donald Trump has initiated an investigation into imports of processed critical minerals and products containing them, potentially leading to new tariffs. The secretary of commerce will evaluate whether these imports, including oxides, metals, master alloys, and products like EVs and batteries, pose a national security threat under Section 232 of the Trade Expansion Act of 1962.

The investigation, expected to last 90 days, could replace reciprocal levies enforced earlier this month. China, a dominant player in critical mineral processing and battery production, controls three-quarters of global battery production, according to the International Energy Agency.

The executive order coincides with government efforts to impose tariffs on copper imports and boost domestic production of critical minerals. Emergency powers under the Defense Production Act were invoked last month to prioritize developments and expedite permits for federal land projects.

Currently, Chinese goods face 145% tariffs in the US market, including a 125% reciprocal tariff. If a 25% tariff under Section 232 replaces reciprocal tariffs, US importers in automotive and clean tech industries may benefit. However, it remains uncertain whether the tariff replacement will apply universally or exclude China.

Washington has exempted reciprocal tariffs on some Chinese products, while Beijing urges the US to cancel reciprocal tariffs entirely and return to mutual respect.