- Trump exempts critical minerals from tariffs.
- $1 billion allocated for domestic infrastructure.
- Greater supply chain stability expected.
President Trump issued an executive order on April 2, 2025, exempting critical minerals like lithium and copper from tariffs to strengthen U.S. supply chains.
The exemption promises to boost domestic production, reducing reliance on imports while likely stabilizing commodity prices and supporting national defense and renewable energy sectors.
President Donald Trump issued an executive order on April 2, 2025, exempting over a dozen critical minerals such as lithium, rare earths, and platinum group metals from tariffs. This move aims to strengthen U.S. supply chains. The executive order also allocates $1 billion to support domestic infrastructure and reduce reliance on foreign imports. This funding is expected to bolster U.S. producers and facilitate quicker resource development.
The order is anticipated to reduce price volatility and encourage investment in strategic sectors, notably benefiting industries related to batteries, defense, and renewables. Companies like MP Materials and Energy Fuels are likely to see significant advantages. Financial implications include potential growth for domestic producers and less volatile commodity prices for exempted materials. The move is set against the backdrop of increased tariffs on steel and aluminum, which are now at 50%.
This executive order is aimed at strengthening our domestic supply chains for critical minerals essential for batteries, defense, and renewable energy.” – Donald Trump, President of the United States: source
While immediate crypto impacts aren’t clear, tokenized commodities and DeFi protocols linked to mining and supply chains could experience secondary effects. The decision marks a shift in U.S. trade policy regarding strategic minerals.
