The global auto industry is feeling the squeeze of the ongoing trade conflict between the United States and China. One of the most impactful moves? China’s decision to restrict foreign automakers’ access to vital magnets and rare earths that every car brand uses in vehicle technology and manufacturing. However, President Trump says a deal is all but done to get “full magnets” and “necessary rare earths.”

President Donald Trump says that a US-China deal is ‘done,’ complete with ‘full magnets’ and ‘necessary rare earths’

In a tweet that sounded suspiciously like an urgent telegram from yesteryear, the president assured the American people that a rare earth materials and magnet deal is entering the final stages. It’s a deal between the United States and China, and it may prove a solution to the recent squeeze felt by automakers over the shortage of vital materials.

“OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME. FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA,” the president said on social media.

“LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!),” he added. However, the president didn’t get into too much detail about what other promises the US made to China in the deal. 

The president finished by saying, “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!” Needless to say, the social media post must sound like music for domestic automakers. 

If the deal goes through, it’s good news for the US auto industry

China’s move to block US access to the country’s vital materials has already caused delays for domestic American auto manufacturing. Ford, for example, halted production of its popular Explorer SUV earlier this year for want of magnets. It was so bad that Magnosphere CEO Frank Eckard recently said manufacturers were “willing to pay any price.” Worse yet, Eckard claimed companies were in a “full panic.” 

Magnets? Sounds a little wild that something that shares a name with the “Beach, Please” magnet on your refrigerator could bring the global auto industry to a state of “full panic.” Well, modern vehicles, be they simple ICE hatchbacks or complicated luxury EVs, use magnets for many purposes.

Did you use your windshield wipers today? How about your stereo? Hell, did you start your car? Rare earth materials are present in all of it. And China controls around 90% of the world’s magnet and rare earth metal alloy production, per Reuters. Understandably, then, automakers and governments are seeking alternatives outside of China. In the meantime, a deal might be the next best thing to keep the cars coming.