The Department of Commerce has initiated a Section 232 investigation covering neodymium-iron-boron magnets, the department announced Sept. 24.
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Section 232 investigation to cover neodymium magnets
The Trump administration used Section 232 of the Trade Expansion Act of 1962 to investigate whether steel and aluminum imports are having a harmful impact on national security. Ultimately, as metals buyers know, the former president opted to slap tariffs on steel and aluminum of 25% and 10%, respectively.
Meanwhile, neodymium magnets go into a wide variety of applications, including wind turbines, electric vehicles and cordless tools, among many others. In addition, as the DOC noted, neodymium magnets also have military applications in fighter aircraft and missile guidance systems.
“The Department of Commerce is committed to securing our supply chains to protect our national security, economic security, and technological leadership,” Secretary of Commerce Gina Raimondo said. “Consistent with President Biden’s directive to strengthen our supply chains and encourage investments to shore up our domestic production, the Department initiated a Section 232 investigation on imports of NdFeB permanent magnets to determine whether U.S. reliance on imports for this critical product is a threat to our national security.”
The DOC asked interested parties to submit written comments, data, analyses, or other information to the Bureau of Industry and Security by Nov. 12, 2021.