In this context, “processed critical minerals and their derivative products (PCMDPs)” means:
• Processed critical minerals – raw critical minerals (like lithium, cobalt, nickel, rare earth elements, gallium, etc.) after they’ve been refined or chemically treated into usable materials such as oxides, metals, alloys, salts, or other intermediate forms used in manufacturing.
• Derivative products – industrial materials and components made from those processed minerals, such as rare-earth permanent magnets, battery cathode materials, specialized alloys, and similar parts that go into electronics, vehicles, energy systems, and defense equipment.
The proclamation and Commerce’s Section 232 investigation treat this whole chain—from refined minerals through key components made from them—as “PCMDPs” because all of them are essential inputs for U.S. defense and critical infrastructure industries.
Section 232 of the Trade Expansion Act of 1962 lets the U.S. President change how much of a product can be imported if those imports are found to threaten national security.
Process and powers: • The Commerce Department investigates and reports whether specific imports threaten to “impair the national security.” • If the President agrees, he can “adjust the imports” of that article and its derivatives. That includes imposing or raising tariffs, setting quotas, negotiating limiting agreements with other countries, or taking other measures to restrict or manage imports over time. • The statute explicitly allows a continuing “plan of action,” including negotiations first and additional restrictions later if needed.
As of early 2026, the United States Trade Representative (USTR) is Ambassador Jamieson Greer, a cabinet‑level official who leads the Office of the USTR in the Executive Office of the President.
Role in these negotiations: • The USTR is the President’s chief trade negotiator and advisor on trade policy. • Under the proclamation, the USTR must work jointly with the Secretary of Commerce to negotiate agreements with U.S. trading partners on critical-mineral imports—potentially including minimum prices, volume limits, or other rules—to reduce U.S. security risks from import dependence. • More broadly, USTR coordinates U.S. positions, leads talks, and helps enforce any trade agreements that result.
A “price floor” in trade is a policy that prevents a product from being sold below a specified minimum price.
How it would work for critical minerals: • Governments would agree that certain critical minerals or mineral‑based products cannot be exported or imported below an agreed minimum price per unit. • If world market prices fall under that floor, importers would have to pay at least the floor price (sometimes with government support to domestic buyers or guaranteed purchasing at the floor). • The stated goals in this context are to reduce “below‑cost” dumping, limit extreme price swings, and give miners and processors confidence to invest in new U.S. and allied production capacity.
The proclamation tells Commerce and USTR to “consider price floors for trade in critical minerals and other trade‑restricting measures” while negotiating with partners.
Industries and military systems most dependent on these minerals include:
• Defense & weapons systems – fighter jets, missiles and precision‑guided munitions, armor plating, naval ships, radar, secure communications, navigation, and surveillance systems all rely on specialty alloys, rare earths, and other critical minerals. • Electronics & communications – smartphones, computers, data centers, 5G equipment, fiber‑optic networks, and satellites use gallium, germanium, indium, yttrium, rare earths, and others. • Energy & transport – electric‑vehicle batteries (lithium, cobalt, nickel, graphite), wind turbines and high‑efficiency motors (rare‑earth magnets), nuclear fuel (uranium), and grid‑scale batteries all depend on critical minerals. • Broader critical infrastructure – the Commerce report and proclamation state critical minerals are essential to all 16 U.S. critical‑infrastructure sectors (chemicals, transportation, manufacturing, healthcare, etc.).
Effects will vary by product and how aggressive the measures are, but typical impacts are:
On manufacturers: • Higher input costs if tariffs, minimum import prices, or supply‑diversion to domestic producers raise mineral prices. • Potential supply security benefits (more stable, diversified sources) that can reduce the risk of sudden production stoppages. • Pressure to redesign products, switch materials, or move more processing and manufacturing onshore or to allied countries.
On consumer prices: • If manufacturers’ costs rise and cannot be absorbed, prices of end products (EVs, electronics, appliances, some defense‑related and infrastructure goods) are likely to increase. • Over the longer term, if new U.S. and allied production reduces dependency on a single dominant supplier and stabilizes markets, price volatility for many products could decline, even if average prices stay somewhat higher.
Analyses of past critical‑mineral and Section 232 actions find that such trade restrictions tend to raise costs in the short run while aiming to improve security and resilience over time.
The proclamation directs the Secretary of Commerce, the U.S. Trade Representative, and the Secretary of Homeland Security to use their legal authorities to implement and enforce any measures adopted under this action.
Key tools include: • Issuing regulations, rules, guidance, and procedures governing imports of PCMDPs (for example, new licensing, reporting, or compliance requirements). • Temporarily suspending or amending existing import‑related regulations within their jurisdictions to give effect to the proclamation and any negotiated agreements. • Using customs and border‑security powers (through the Department of Homeland Security/CBP) to police the border—blocking, detaining, or seizing non‑compliant shipments and verifying origin, pricing, or quota status. • Employing all powers the President has under Section 232 that can be lawfully delegated, including implementing tariffs, minimum import prices, or quantitative limits once ordered.