Why Trump's trade fight with China is roiling EV markets
China's growing restrictions on the global flow of rare earth elements are threatening to upend auto and EV markets around the world — an under-the-radar flashpoint that's emerging in President Donald Trump's trade war with Beijing.
Ford, General Motors, Toyota, Volkswagen, Hyundai and other members of the Alliance for Automotive Innovation have warned top Trump officials for weeks that China has slowed export approvals for rare earth elements needed to make transmissions, alternators, motors, power steering systems and other auto parts. Those warnings are significant because China dominates the mineral markets and can shut off or throttle supplies to U.S. automakers, defense, energy and other sectors.
'Without those essential automotive components, it will only be a matter of time — before the end of this month, most likely — until vehicle assembly in the U.S. is disrupted,' the industry group wrote in a May 9 letter. 'In severe cases, this could include the need for reduced production volumes or even a shutdown of vehicle assembly lines.'
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China has for decades been building its dominant position in the rare earths markets and is now wielding that power in talks with Trump. Today, the country has a near-monopoly on the mining and refining of rare earth elements, a group of 17 metallic elements used to make some of the strongest magnets in the world that are needed to make everything from smart phones to EVs and military equipment. As it stands, China refines more than 99 percent of the world's heavy rare earths needed for magnets in EVs, wind turbines and electronics.
Beijing's strength is now a focal point in trade talks.
John Bozzella, the alliance's president and CEO, said in an email to POLITICO's E&E News that China's limits on rare earths was on the agenda when Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with their Chinese counterparts in Geneva earlier this month. The issues remain unresolved, however, and automakers will soon feel the pinch, he said.
'That's a concern,' said Bozzella. 'We're grateful for the high-level intervention and the administration's work to protect supply chains and prevent disruption to U.S. auto production.'
Bessent on Sunday accused China of withholding critical minerals and rare earth elements and violating the Geneva agreement. '[T]he fact that they are withholding some of the products that they agreed to release during our agreement,' said Bessent, 'maybe it's a glitch in the Chinese system, maybe it's intentional.'
China has clapped back, and said the U.S. — not Beijing — is violating the agreement with its handling of Chinese microchips and student visas.
While efforts are underway to build up domestic supply chains and sources of rare earth elements and magnets, automakers say they remain reliant on China for those materials — and warn the fight is affecting other needed materials.
The Alliance for Automotive Innovation said in the May 9 letter to Bessent, Greer, Secretary of State Marco Rubio and Secretary of Commerce Howard Lutnick that there are currently few, if any, alternative sources to Chinese rare earth elements.
'We also have reports this is impacting elements that are not subject to the export restrictions but processed in the same facility as the controlled elements, such as neodymium,' the trade groups wrote. 'Taken together, this is leading to major disruptions in the global supply of needed elements.'
Chinese leverage
China's latest move to restrict rare earth elements is part of a broader trade war between the world's two largest economies — one that's likely to escalate in the coming weeks.
In April, Beijing raised the bar for exports of rare earth elements like samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium needed for magnets, nuclear tech, cancer research, oil drilling and other high-tech sectors. China did so after imposing restrictions on critical minerals like graphite, gallium and germanium.
Greer in an interview with CNBC on Friday said China was the only country to retaliate with countermeasures and restrictions on rare earths. He also said China agreed in Geneva to pull back on those policies but continues to strangle the flow of critical minerals.
White House National Economic Council Director Kevin Hassett said on CNBC that Trump and Xi could talk trade as soon as this week. Hassett's comments arrive on the heels of Trump accusing China of violating its preliminary trade agreement with the U.S. 'So much for being Mr. NICE GUY!' Trump wrote in a social media post.
But Beijing has pushed back on the Trump administration's assertions.
China's ministry of trade on Monday said in a statement that accusations that it had broken the terms of a trade war truce by holding back key materials were 'groundless' and argued that the U.S. had 'seriously damaged' the agreement with its handling of Chinese microchips and student visas.
Trump and previous administrations have moved to ramp up domestic production of minerals and rare earth elements. As it stands, the Mountain Pass project in California is the nation's only mine commercially producing rare earth elements. Other projects are in the pipeline, including Cyclic Materials' construction of two facilities in Arizona and Ontario that would process scrap to produce rare earth elements.
Yet China continues to have leverage in trade talks because of its widespread control of mineral markets, and, more recently, a clearer view of how those materials are being shipped around the world, said Emma Bishop, a vice president at Venn Strategies, which works with companies across the battery and permanent magnet supply chains.
Bishop noted that China last summer launched a government-run program to track rare earth imports, exports, production and related technologies, which has given Beijing unprecedented insight into the processes companies use, as well as pricing, who they are selling to and where that material is going.
This means the government knows what companies are most vulnerable as the rare earth supply bottleneck tightens, including the impact on U.S. automakers, she said.
'They know that this is causing pressure for U.S. autos because they have that visibility into the supply chain,' said Bishop. 'China has that insight and supply chain control, and the U.S. doesn't, which puts us continuously on the back foot when we're trying to be competitive in these trade talks.'
Reporter David Ferris contributed.
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Yahoo
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Tough on Terrain, Easy on Your Wallet: Budget Off-Road SUVs That Crush It
Over the past few decades, the auto industry has steadily blurred the definition of what an SUV really is. What once described large, rugged vehicles built for tough terrain now includes everything from compact crossovers to lifted hatchbacks. Today, some so-called SUVs start around $20,000 and don't even come with all-wheel drive, making them better suited for school drop-offs than off-road adventures. If you're looking for something more capable, a vehicle that can actually handle trails, snow, and rough terrain, then you're in the right place. We chose these SUVs based on their price first and foremost. If it's brand new, we've chosen the trim level that fits within this budget, and the prices are correct at the time of publication. If it's used, we reference the market valuation website for the current value. As for the off-road capability, we use the opinions and experience of professional automotive journalists who have driven these SUVs and tested them in the right conditions. Wherever we mention stats, such as ground clearance, etc., they are the official figures claimed by the automakers. So, what kind of SUV can you buy for $40,000 or less and not have to worry about road conditions? Let's see… Easily one of the most obvious choices. The Wrangler is one of America's favorite off-roader SUVs, and despite all the jokes and stereotypes surrounding both it and the Jeep brand as a whole, it still has some good value to bring. Available as a three-door or five-door, the Wrangler is a genuinely capable off-roader right from the factory. The latest one is offered with 35" tires, giving it an almost ridiculous 13" ground clearance. You can also get the 2025 Wrangler as a plug-in hybrid, and it's even possible to spec it with an optional winch. For $40,000, you'll have to settle for a base Sport if you want four doors, but if you're fine with a two-door, add $190 to the budget, and you'll have a more specced-out Willys. We'd love to include the 2025 4Runner in this roundup, but sadly, that car starts from $40,000. Instead, the fifth-generation 4Runner will have to do. Actually, that doesn't sound right. The fifth-generation 4Runner will most certainly do. Launched in 2010 and staying in production for a decade and a half, the fifth-generation 4Runner was one of the last truly old-school SUVs on the market. While everyone transitioned to hybrids and smaller engines, the 4Runner was chugging away with a big 4.0-liter V6 and a five-speed automatic, as reported by TrueCar. YouTuber Doug DeMuro also demonstrated how old school it was in his review, including the persistent use of a regular key. places the fifth-gen 4Runner at around $33,000. You might need to go for a higher mileage example, but this is a Toyota SUV, so that shouldn't be much of a problem. Easily one of the greatest comebacks in automotive history. After decades of consideration and teasing, Ford finally brought back the Bronco in 2020 as a proper competitor to the Jeep Wrangler. If you want a brand-new Bronco, the basic ones start from just under $40,000. It's a better idea to go through the classifieds for certified pre-owned or leftover inventory. Even though values the Bronco at around $70,000, if you dig past all the hideous, modified examples, you could get a Bronco with the Sasquatch package for around $36,000. You definitely want the Sasquatch because that's the one with the locking diffs, larger tires, and beadlock wheels. That's not to say the regular Bronco isn't capable enough already, as Elana Scherr of Car and Driver discovered. The Mercedes G-Class guarantees off-road ability in the same way that a sunny day guarantees a blue sky. Starting its life as a military vehicle, the G-Wagen has become one of the most iconic and notoriously capable off-roaders of all time. It oozes cool factor from every angle, and that has meant, among other things, sky-high values. Obviously, $40,000 is nowhere near enough for a brand-new Rodeo Drive spec G-Class. For this kind of money, you'll be looking at an imported W463 G Wagen, meaning anything from the early '90s until about 2000 or so. Although they have less tech than the newest ones, Jonathan Bryce of Autocar reports that they still have a decent amount of creature comforts and some pretty unstoppable diesel engines. Many of them are now legal to import to the States. Even though Classic values the diesel G-Wagens of this vintage at around $45,000, some are going for $35,000 or even around $25,000. This is the Toyota SUV that was gone too soon, and it needs to be brought back. The FJ Cruiser was a tribute band to the original FJ40 Land Cruiser, hence the name, and it was a more fun way to have an off-roader SUV. Everything about this thing oozes style and character, from the half-size rear doors to the general shape and the trio (yes, really) of windshield wipers. It's also tough and durable on the inside, the powertrains are reliable, as Vlad Radu of Autoevolution reports, and the styling is not just for show: it's genuinely capable. For $40,000, you might get lucky and find one of the Trail Team's versions. If you want to play it safe, Classic places the regular FJ Cruisers at around $28,000 on average, and for closer to $40,000, you'll have a mint condition one with low miles. This also means that the FJ Cruiser doesn't really do depreciation. Another off-roader SUV that disappeared from the market a little bit too soon. The Xterra was, ostensibly, an SUV version of the Frontier pickup truck. It aimed to offer genuine capability in a smaller footprint and at a more affordable price. As Zach Bowman of MotorTrend reported, it doesn't really drive like a bulky lifted car on the road, but when duty calls, the Xterra will respond every time. The second-generation Xterra received some nicer off-road hardware, including, as Ron Kiino of C&D reported, a proper locking rear differential. The first-generation cars had a rear LSD, but they were still plenty capable. Classic places both generations of the Xterra at around $13,000 on average, and that kind of money is plenty enough for a well-kept example with the off-roading upgrades. The third-gen Montero, known as the Pajero or Shogun in other markets, blends comfort and off-road performance with a surprising amount of refinement. While earlier Monteros were more utilitarian, this version embraced modern comforts without sacrificing its serious 4WD chops. With a unibody chassis and fully independent suspension, it may not be a rock crawler like a Wrangler, but it's extremely capable on rough trails. Most examples fall in the $6,000–$12,000 range, depending on condition, so you've got room in the budget for tires and a mild lift. Some of you may not know, but throughout most of the world, Toyota offers a smaller version of the Land Cruiser called the Land Cruiser Prado. That's essentially what the 250 Series is now, and Gero Lilleike of confirms it still carries that same Prado name overseas. Technically, there was a way to have a Prado in North America, too, but it had a Lexus badge instead of a Toyota one. The GX first came to North America in 2002, but we're focusing on the second-generation J150 here. The Lexus GX enjoyed V8 power in the States, which its overseas counterpart couldn't brag about. While it did focus a lot on luxury, Jason Fogelson of Forbes reported that the J150 GX has permanent 4WD and a standard locking center diff, which made overlanding as easy as pie. According to Classic, second-generation GX models go for around $27,000 on average. GM doesn't exactly have a stellar reputation for off-roaders, but the original TrailBlazer is a dark horse. It came with a robust 4.2-liter inline-6 making 275 horsepower, solid towing capability, and optional 4WD with low range. The platform was shared with the GMC Envoy and a few others, but the TrailBlazer stood out for its rugged utility. It's not the flashiest SUV out there, but with used prices starting at just a couple of thousand dollars, according to Kelley Blue Book, it's a dirt-cheap ticket to your favorite trailhead. If you're looking for a full-size SUV that combines comfort with genuine off-road chops, the Z71 trim of the Chevrolet Tahoe is a solid pick. Available across multiple generations, the Z71 package added off-road suspension, skid plates, beefier tires, and a locking rear differential, features that helped transform the Tahoe from suburban hauler to backcountry bruiser. Despite its size, the Tahoe Z71 is surprisingly capable off-road, especially when paired with the 5.3-liter V8 engine. Parts availability is excellent, reliability is solid, and there's plenty of space for gear or passengers. J.D. Power lists average values for 2004 Z71 models around $4,225–$9,500, making them a budget-friendly way to explore the wild without sacrificing daily drivability. Isuzu pulled out of the U.S. market a long time ago. The Japanese automaker did not leave without a bang, however. The VehiCROSS is one of the strangest, most admirable SUVs to emerge in the late 90s and the early 2000s. It was offered exclusively with three doors and had some truly ridiculous (in a good way) styling, the most notable aspect being the massive tires. As Frank Markus of Car and Driver reported, the VehiCROSS had beefy drivetrain components designed not just to go off-road but to go off-road fast. In that regard, the VehiCROSS and its Baja capabilities were way ahead of their time. 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The XJ Cherokee was one of the first production SUVs to use a unibody instead of body-on-frame, something that Jerrod Jones of MotorTrend covers in great detail. That didn't mean the XJ Cherokee was not capable of off-roading, even if it did require a few small modifications. What's more, you could have it with Jeep's 4.0-liter inline-6, an engine one Reddit user claims is quite literally unstoppable. According to Classic, on average, XJ Cherokees are going for around $13,000, though the nicely kept examples are closer to $20,000. One of a handful of Suzuki models that Americans fondly remember. Also briefly known as the Geo Tracker, the Suzuki Sidekick was the North American version of the Vitara/Escudo, and it was a pretty big change of pace for the SUV market at the time. David Tracy of the Autopian makes it clear that this is not an SUV we should mock based on appearances. The Sidekick stood out due to its comparatively small dimensions, and it was jam-packed with personality. It looks cool even today. When it comes to SUVs, Suzuki tends to focus on off-road capability, and the Sidekick is no exception. It's a fun way to go further off-road than any vehicle this size has any right to do, and you won't have to part ways with a ton of cash. Considering that these go for $8,000 on average, according to Classic, it's an affordable way to venture off-road. The Grand Vitara is one of the most overlooked modern compact SUVs with legitimate off-road capability. Unlike most of its crossover competitors, it used a ladder-frame-on-unibody design with a real low-range transfer case. This was a decent off-road SUV straight off the showroom floor, and with modest mods like all-terrain tires and a slight lift, it becomes a surprisingly competent trail runner. Best of all, you can scoop one up for around $8,000, leaving plenty of headroom in your budget for personalization. Before the Explorer became a mall crawler, the early models were proper off-road rigs. 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According to Kelley Blue Book, used prices hover around $3,000–$6,000, making it one of the cheapest ways into the Jeep lifestyle. Before the Durango went full soccer-mom SUV, the first-generation model was a decent off-roader. Built on a modified Dakota pickup chassis, it came with V8 power, optional 4WD with a low-range transfer case, and seating for up to seven. It wasn't luxurious, but it was rugged and full of attitude. You can find one of these listed for around $5,000–$7,000, depending on mileage and condition, which makes it one of the most affordable ways to obtain V8-powered off-road capability. One of the most badge-engineered cars in history, the Isuzu Rodeo was marketed under about a dozen other brands and model names. The Rodeo is somewhat of a cult classic SUV nowadays, and it's a pretty interesting off-roader. Christian Hazel of MotorTrend singles out the Rodeo as a great first off-roader since it doesn't lose all talent when it's on the pavement. It's decently drivable on the road, but when you want to go off-roading, you won't have a hard time. The most desirable Rodeos use the 3.2-liter V6, and Classic places the average value at around $8,000. You might have to pay a little bit more for the nicest ones, though. Many off-road SUVs come with a hefty price tag, and even then, they often need expensive modifications to handle serious terrain. Between upgrades, lift kits, and aftermarket gear, costs can climb quickly. But the models featured here prove you don't need to break the bank to get true off-road capability. With a budget of around $40,000, you can find an SUV that's ready for adventure straight from the factory, no major upgrades required. Just a sense of direction and a willingness to explore.
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Trump's Travel Ban Casts Shadow Over FIFA World Cup Access
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The 2026 FIFA World Cup will be co-hosted by the United States, Canada, and Mexico, with most matches—including the final—taking place in American stadiums. However, hopes among Iranian fans in particular to attend and support their national team on U.S. soil are now in doubt following President Donald Trump's announcement of a new travel ban targeting 12 countries, including Iran. Newsweek has reached out the White House, FIFA and Iran's foreign ministry for comment. Why It Matters The travel ban deepens already strained U.S.-Iran relations. With nuclear talks stalled and President Trump ramping up his "maximum pressure" campaign, the policy reflects rising tensions that now spill into global sports. Events like the World Cup offer rare chances for connection across hostile borders. By barring Iranian fans, the ban closes one of the few remaining windows for people-to-people engagement, reinforcing a broader climate of isolation. Close up of an Iranian fan in the stands during the FIFA World Cup Qatar 2022 Group B match between Iran (0) and USA (1) at Al Thumama Stadium on November 29, 2022 in Doha,... Close up of an Iranian fan in the stands during the FIFA World Cup Qatar 2022 Group B match between Iran (0) and USA (1) at Al Thumama Stadium on November 29, 2022 in Doha, Qatar. (Photo by /Anychance/Getty Images) MoreWhat to Know Iran is the only nation on the travel ban list that has already secured a place in the 2026 World Cup. While Iranian players will be permitted to compete, their supporters will be barred from entering the U.S. For many fans from Iran, this tournament could be a rare chance to watch their team play on American soil—an opportunity made even more meaningful by decades of political estrangement. Other banned nations, including Venezuela, Sudan, Equatorial Guinea, Libya and Haiti, remain in contention for qualification. Venezuela currently sits five points off automatic qualification but could secure a place through a playoff. Sudan is just one point behind the leader in its qualifying group. FIFA Faces Pressure FIFA has yet to comment on the ban, but scrutiny is mounting. In 2017, FIFA President Gianni Infantino said: "It's obvious when it comes to FIFA competitions, any team, including the supporters and officials of that team, who qualify for a World Cup need to have access to the country, otherwise there is no World Cup." With fans from a qualified country now excluded, critics are urging FIFA to defend its own standards. Iran's players celebrate after the FIFA World Cup 2026 Asia zone qualifiers group A football match between Iran and Uzbekistan, on March 25, 2025 in Tehran. Iran's players celebrate after the FIFA World Cup 2026 Asia zone qualifiers group A football match between Iran and Uzbekistan, on March 25, 2025 in Tehran. Getty Images Social Media Outcry Builds The backlash online was swift. @stephenpglenn wrote: "So Trump's travel ban list includes Iran who have qualified for the World Cup... @FIFAWorldCup and @iocmedia must really start looking at the suitability of USA to host the 2026 World Cup and 2028 Olympics." Another user asked, "How is it even possible to have a World Cup in a country that won't allow foreign fans?" Reddit users voiced similar frustration, with one commenter speculating that FIFA will "rig the group stage draw so that Iran, Venezuela etc play their matches in Mexico or Canada." The growing sentiment online reflects mounting pressure on FIFA to respond—and soon. Yesterday, Trump officially announced that fans from Iran will NOT be allowed to come and support their country at the World Cup. How is it even possible to have a World Cup in a country that won't allow foreign fans @FIFAWorldCup @FIFAcom @fifamedia ?#worldcup #football — Man at C&A 🇬🇧 (@BeardedBrownMa1) June 5, 2025 What People Are Saying U.S. President Donald Trump: "The recent terror attack in Boulder, Colorado, has underscored the extreme dangers posed to our country, by the entry of foreign nationals who are not properly vetted, as well as those who come here as temporary visitors and overstay their visas. We don't want them." FIFA President Gianni Infantino: "Any team, including the supporters and officials of that team, who qualify for a World Cup need to have access to the country, otherwise there is no World Cup." James Montague, soccer writer and author of Engulfed: How Saudi Arabia Bought Sport, and the World told Newsweek: "I suspect there will be some carve out for fans since infantino has a very close relationship with Trump. But the issue of fans from certain countries being prevented from going may be a moot point. If there's a chance fans might be denied entry, arrested and deported for social media posts that criticized Trump, or Israel, I suspect a lot people will be scared away and stay at home, whatever Infantio and Trump promise." What Happens Next Trump's ban underscores how geopolitical tensions can undermine the global spirit of sports, affecting not just Iran but other nations still vying for World Cup spots. While athletes may compete, many fans face restrictions that challenge FIFA's promise of full participation and raise concerns about hosting major events in countries with strict travel policies.
