Rare earth magnet supply chain issues from China impacting auto and electronics industry, including smartwatches and wireless earbuds.

Markets cheered in early May when the US and China agreed in Geneva to lower tariffs and other barriers. But after a few weeks, the shine started to come off that deal, with China accusing the US of violating it with new restrictions and the US saying China failed to honor promises on rare earths.

Germany's auto lobby warned China's export restrictions on rare earths, used in everything from windshield-wiper motors to anti-lock braking sensors, could soon cause production outages, the latest industry group to sound the alarm over delays to supply.

Global automakers and governments are raising concerns as China's restrictions on rare earth magnet exports disrupt supply chains. These restrictions, citing national security, impact critical industries like electric vehicles and defense.

Beijing has infuriated Trump officials by failing to loosen its crackdown on exports of seven “heavy” rare earth metals which are essential for gadgets like smartphones and electric cars as well