ISTANBUL

US President Donald Trump has signed an executive order directing the secretary of commerce to launch an investigation into the country’s reliance on imported critical minerals.

"The dependence of the United States on imports and the vulnerability of our supply chains raises the potential for risks to national security, defense readiness, price stability, and economic prosperity and resilience," Tuesday's order said.

On March 20, Trump signed an executive order that will encourage public and private investment and establish financing and credit mechanisms to increase the country's energy and critical minerals production.

Trump's decision is seen as a move to break China's dominance in the field as demand for critical minerals increases worldwide.

The US heavily relies on China for rare earth elements (REEs), which are essential in manufacturing advanced technology, defense systems, and renewable energy products.

China, which leads global REE production, has taken steps to tighten control over exports of these strategic materials -- often in response to US trade policies.

Trump, during his first presidential term, imposed tariffs on Chinese goods in March 2018, prompting China to respond by restricting REE exports. The latest restrictions came on April 4, just two days after new US tariffs were announced.

China currently accounts for 69% of the world’s rare earth production and holds 49% of the estimated 90 million tons of global reserves, according to the US Geological Survey’s 2024 data.