Trump signs executive order to boost domestic production of critical minerals

On March 20, US President Donald Trump signed an executive order aimed at increasing domestic production of critical minerals, including uranium, copper, potash, gold, and potentially coal.

Under the new directive, federal agencies have been instructed to compile lists of pending mineral projects and expedite their reviews in coordination with the National Energy Dominance Council, which is led by Interior Secretary Doug Burgum, Caliber.Az reports via US media.

The president’s order also directs Burgum to prioritise the extraction of critical minerals on federal lands over other activities. The Secretary will have the authority to decide whether other minerals, such as coal, are included in the order.

To further boost production, Trump plans to use the Defence Production Act (DPA), a measure previously invoked by President Joe Biden in 2022 to support the increased output of critical minerals.

The United States International Development Finance Corporation (DFC) will provide funding for new production projects, with a dedicated critical minerals allocation, in collaboration with the Defence Department.

In 2023, the U.S. imported 46% of its copper and 91% of its potash, which is a key fertiliser in agriculture, according to the U.S. Geological Survey. The Energy Information Administration reported that 99% of the uranium concentrate required to fuel U.S. nuclear plants was imported that same year.

In parallel, a new 25% tariff on steel and aluminium imports into the US took effect on March 12, ending previous exemptions for major trade partners, including Canada, Mexico, Brazil, and the European Union. 

This expansion of tariffs, announced by President Trump, means US businesses will face higher costs when importing these metals. Trump had earlier imposed separate 25% tariffs on goods from Mexico and Canada, with exemptions for carmakers, and a 20% levy on Chinese goods. In retaliation, the European Union plans counter-measures on US goods worth €26bn (£21.9bn). These tariffs could lead to higher consumer prices.

By Aghakazim Guliyev