• Trump orders investigation into potential tariffs on critical minerals imports.
• New tariffs of up to 245% on Chinese imports may follow due to retaliatory actions.
• The US aims to reduce reliance on Chinese processed minerals crucial for defense and technology.
• China responds by tightening its own export controls on strategic materials.
• Tariff escalations could significantly impact global supply chains and economic stability.

On April 15, President Trump initiated a review that could lead to tariffs on critical minerals imports, citing national security risks due to the U.S.'s reliance on foreign sources, particularly from China. This investigation aims to assess vulnerabilities in supply chains for crucial materials like cobalt, lithium, and nickel, which are essential for U.S. military and energy infrastructure, including applications in jet engines and missile systems, according to the CBS News.

The situation escalated further when the White House disclosed that China now faces tariffs of up to 245% on imports as a response to its retaliatory actions. This announcement aligns with Trump’s broader agenda to implement an “America First” trade policy, aiming to restore economic strength while addressing dependencies that pose national security threats, as stated in a report by Dawn.

Concerns about China's monopolistic control over rare earth metals prompted U.S. officials to classify these tariffs as necessary to combat unfair trade practices. With the U.S. currently relying on China for approximately 70% of its rare earth imports, the dependency raises alarm about the implications for national defense and economic stability, emphasized officials from multiple sources including India Times.

The order for this probe builds upon prior investigations into various industries, utilizing Section 232 of the Trade Expansion Act, a strategy previously utilized to impose tariffs on steel and aluminum imports during Trump's first term. This legal framework allows for tariffs imposed on the premise of protecting national security, which could see new taxes applied to a range of critical mineral imports should vulnerabilities be identified, as noted by Channel News Asia.

In retaliation, China previously restricted exports of high-tech materials such as gallium and germanium, highlighting its ongoing influence in the critical minerals market. The White House pointed to these export limitations as justification for its aggressive tariff strategy, as discussed in reports by TRT Global.

The escalating tensions from tariffs could signal broader impacts on global supply chains, prompting the U.S. to reassess its manufacturing and procurement strategies. Analysts warn that sustained tariff conflicts could push American companies to seek other suppliers, disrupting trade relationships and potentially leading to a slowdown in international economic activity, according to insights shared by Newsweek.

As both nations prepare for possible negotiations, China's response to Trump's assertions has emphasized its unwillingness to be coerced into negotiations without mutual respect and dialogue, framing the ongoing trade war as detrimental to both side’s interests, as highlighted in statements from China's foreign ministry reported by India Times.