US Launches Tariff Probe on Rare Earth Metals Imports

"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," the document, published by the White House, read on Tuesday.

The document noted that an "analysis of the distortive effects of the predatory economic, pricing, and market manipulation strategies and practices" allegedly used by foreign countries that export the minerals to the United States will be conducted.

In order to reduce national security risks and increase production of these minerals in the country, the US may resort to tariffs, the document added.

In 2018, President Trump imposed 25% tariffs on steel and aluminum imports under the same section of the Trade Expansion Act.

The US relies heavily on imports of metals such as cobalt, gallium, germanium, and others, while countries like China and Russia have the largest reserves of these metals.