Donald Trump has threatened to apply tariffs on critical minerals in a move that could increase tensions with China and open a new front in a global trade war that has rattled markets.
In an executive order on Tuesday, the US president ordered the commerce department to study the critical mineral supply chains and come up with ways to boost American production while cutting reliance on imports.
The investigation could lead to new tariffs being imposed. Trump’s announcement comes just over two weeks after his “liberation day” tariffs sparked days of market turmoil and warnings that the deepening stand-off with China could tip the global economy into recession.
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