Trump set to waive some legal requirements to boost critical minerals

WASHINGTON: President Donald Trump is set to use emergency powers and slash legal requirements - including some congressional funding approvals -relating to a law aimed at lifting U.S. production of critical minerals and weapons, according to a document seen by Reuters.

AI Brief

Trump will use emergency powers under the Defense Production Act to increase domestic mineral production.
The move responds to China's export halt of key minerals, which disrupted global supply chains.
Experts say US still needs China short-term, despite long-term efforts to secure local mineral supply.

Trump's action would apply to the Defense Production Act, a U.S. law that grants the president broad emergency powers to control domestic industries and resources during national security emergencies.

The move would represent the latest attempt by the White House to reshape a critical mineral industry dominated by China, the top U.S. economic rival. China is using its leverage in response to Trump's trade war, recently halting critical mineral exports and rattling global supply chains.

The document is expected to be published on the Federal Register on Wednesday, the government web site shows.

Trump invoked the Korean War-era law in March to help boost domestic production of critical minerals used to make consumer goods, computer chips, robots and advanced weaponry.

The law places some restrictions on the president's authority, such as requiring the White House to seek congressional approval for projects over $50 million and forcing project delivery dates within a one-year time frame.

The president can waive those requirements in the event of an emergency and Trump is expected to invoke those powers, according to the document seen by Reuters on Tuesday, ahead of its expected publication.

The White House did not immediately respond to a request for comment.

Former President Joe Biden signed similar waivers to speed up production of vaccines and medical equipment during the COVID-19 pandemic.

John Paul Helveston, a professor at George Washington University, said U.S. investments in critical minerals represent a long-term solution to the problem, leaving the nation vulnerable to China's trade policy in the short run.

"This all means that if the U.S. wants to have access to these minerals over the next 5-10 years, the U.S. will have to maintain a trade relationship with China," Helveston said.