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Trump Targets Critical Minerals Again

President Donald Trump has issued a new executive order initiating a Section 232 investigation into imports of processed critical minerals and their derivative products.

The order emphasizes that critical minerals, including rare earth elements, “are foundational to military infrastructure, energy infrastructure, and advanced defense systems.” Trump’s administration points to significant risks posed by reliance on limited international suppliers who allegedly engage in “price manipulation, overcapacity, arbitrary export restrictions,” and use supply dominance to gain geopolitical leverage.

You can read more on the matter here.

What’s going on?

• Trump Calls Powell ‘Too Late and Wrong,’ Says Termination ‘Cannot Come Fast Enough’ (theDeepDive)

• China Pivots From US to Canada for More Oil as Trade War Worsens (Bloomberg)

• The Leadership Debate Where Canadians Lost (theDeepDive)

• Hudson’s Bay to auction off artifacts, including 1670 charter (Globe)

• Singh Faces Uphill Battle as NDP Campaign Struggles (theDeepDive)

• Donald Trump says Fed chair Jay Powell’s ‘termination cannot come fast enough’ (FT)

• RCMP Officers Demand Liberal Cabinet To Resign (theDeepDive)

• Zelenskiy says Ukraine has evidence of China supplying Russia with artillery (Reuters)

• Ottawa Counters Trump’s Auto Tariffs With Relief Program (theDeepDive)

• DOGE Comes for Clean Energy, Putting Exxon and Occidental Projects at Risk (WSJ)

What’s the latest?

• ECB: The European Central Bank cut its benchmark interest rate by 0.25 percentage points to 2.25%, marking its seventh consecutive rate cut amid concerns over slowed economic growth due to U.S. tariffs. Eurozone GDP grew just 0.2% in Q4 2024, and March inflation eased to 2.2%, close to the ECB's target. The rate cut follows U.S. President Trump’s tariff announcement on imports, with the EU facing a potential 20% tariff, plus an additional 25% auto tariff. The uncertainty has raised fears of reduced exports, investment, and consumption, possibly leading to recession.

• Google: A U.S. federal judge ruled that Google illegally monopolized two key markets in online advertising: publisher ad servers and ad exchanges. The decision strengthens the Department of Justice’s antitrust case, which seeks to force Google to divest its Google Ad Manager, including its ad server and exchange. The ruling comes as Google also faces a separate trial that could lead to a forced sale of its Chrome browser. While the DOJ's case on advertiser ad networks was rejected, Google could now face court-ordered breakups in multiple areas of its business.

• CPP: The Canada Pension Plan Investment Board (CPPIB) sold a portfolio of 25 private equity fund interests for $1.2 billion in net proceeds. The assets, primarily over 10 years old, were bought by Ares Management and CVC Secondary Partners. The sale includes both primary commitments and secondary purchases in North American and European buyout funds. CPPIB said the transaction aligns with its active portfolio management strategy.

• Equities:  In February, Canadians invested a record $29.8 billion (US$21.5B) in U.S. equities, reversing January’s trend when they were net sellers. This surge occurred despite growing anti-U.S. sentiment and boycott movements amid President Trump’s trade war. Meanwhile, foreign investors sold $6.5 billion in Canadian stocks, the largest monthly divestment since 2007, but increased holdings in Canadian bonds by $9.9 billion and money market instruments by $5.6 billion. The S&P 500 peaked in February but has since fallen 14% amid rising trade tensions.

• BHP Warning: BHP Group warned that President Trump’s tariff spree could spark a global economic slowdown, even as the company posted a strong Q1 2025 performance. Copper production rose 10% due to higher output at Escondida in Chile, while iron ore output held steady at 68.1 million tons, despite cyclone disruptions in Australia. BHP maintained its full-year iron ore guidance and highlighted its low cost of $18/ton versus an average selling price of $83/ton. Coal output dropped 12% due to heavy rainfall, while progress continues on its Canadian Jansen potash project, now 66% complete, with production expected in 2026.

BRICS Gold Exchange?

The stock market and stuff

• Another California Refinery Closure Looms Amid Regulatory Pressures (theDeepDive)

• Google ‘wilfully’ monopolised online advertising market, US judge rules (FT)

• UnitedHealth shares plunge 20% after insurer slashes profit forecast (FT)

• Honda Denies Report on Plans to Shift Canadian Production to the US (theDeepDive)

In the juniors

• Tilray Brands Proposes Reverse Split Of Up To 20-To-1 To Regain Nasdaq Compliance (theDeepDive)

• Power Metallic Hits 6.37% Copper Equivalent Over 1.0 Metre, Expanding Tiger Zone (theDeepDive)

• Cardiol Sees First Patient Enrolled Under Phase III MAVERIC Clinical Trial (theDeepDive)

• Hercules Metals Set To Imminently Launch 12,000 Metre Drill Program (theDeepDive)

FULL DISCLOSURE: Power Nickel is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Power Nickel. The author has been compensated to cover Power Nickel on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.