From Yahoo Finance: 2025-06-03 12:43:00

Global automakers and U.S. counterparts express alarm over China’s export restrictions on critical minerals, magnets, and alloys, citing production delays and outages. German automakers warn of potential shutdowns, echoing concerns from Indian EV maker. China’s dominance in critical mineral industry seen as leverage in trade war with U.S.

Trump’s tariffs against China, as high as 145%, have caused backlash from stock, bond, and currency markets. China responds with tariffs and uses supply chain dominance as leverage. Trump and Chinese President Xi Jinping expected to discuss export ban. Magnets shipments halted at Chinese ports, anxiety in corporate boardrooms.

Suspension of magnets shipments triggers anxiety globally. Diplomats and automakers from India, Japan, and Europe seeking meetings with Beijing to fast-track rare earth magnet exports. Japan delegation to meet Chinese officials in June, European diplomats seeking emergency meetings. India organizing trip for auto executives due to potential impact on electric vehicle production.

Trade group representing major automakers warns of inability to produce critical automotive components without reliable access to elements and magnets. Concerns raised in letter to Trump administration. Global disruptions not surprising, calls for ramping up domestic capability. Diplomats, automakers push for faster approval of rare earth magnet exports to prevent global supply chain disruptions.



Read more at Yahoo Finance: Global alarms rise as China’s critical mineral export ban takes hold