American auto parts suppliers have appealed to the government to intervene immediately due to China's restrictions on the export of rare earth metals and magnets, which threatens the production of automotive components. This is reported by UNN with reference to Reuters.
Details
In April, China, which controls more than 90% of the world's rare earth processing capacity, introduced export licensing, which led to a reduction in supplies. This has already caused "serious, real risks" to supply chains, the Motor & Equipment Manufacturers Association (MEMA) said.
The situation remains unresolved and the level of concern remains very high. Immediate and decisive action is needed to prevent widespread disruptions and economic consequences in the vehicle supplier sector
In a joint letter dated May 9, MEMA and the Alliance for Automotive Innovation, which includes General Motors, Toyota, Volkswagen and Hyundai, warned that without reliable access to these materials, suppliers will not be able to produce critical components, including automatic transmissions, throttle assemblies, alternators, various engines, sensors, seat belts, speakers, headlights, steering and cameras.
Without reliable access to these elements and magnets, auto suppliers will not be able to manufacture critical automotive components
Additionally
As reported by UNN, in early May, Ford estimated its losses at $1 billion 500 million in 2025 due to Trump's tariffs.