China's rare earth export curbs hit Europe's car industry
BMW has deployed a magnet-free electric motor for its latest generation of electric cars, but still requires rare earths for smaller motors powering components such as windshield wipers or car window rollers.
German carmaker Volkswagen said it is not seeing any shortages now.
China's slow pace of easing its critical mineral export controls has become a focus of Trump's criticism of Beijing, which he says has violated the truce reached last month to roll back tariffs and trade restrictions.
Trump has sought to redefine the US' trading relationship with its biggest economic rival by imposing steep tariffs on billions of dollars of imported goods in hopes of narrowing a trade deficit and bringing back lost manufacturing.
Trump imposed tariffs of 145% against China only to scale them back after a sell-off in stock, bond and currency markets over the sweeping nature of the levies. China has responded with its own tariffs and is leveraging its dominance in key supply chains to persuade Trump to back down.
Trump and Chinese President Xi Jinping are expected to talk this week to try to iron out their differences and the export curbs are expected to be high on the agenda.
In a social media post on Wednesday, Trump said Xi is 'VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH', highlighting the fragility of the deal.
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