The automotive industry is bracing for supply chain disruptions due to China's export restrictions on rare earth elements and magnets, which were imposed in retaliation to President Donald Trump's tariffs.

The American auto supply sector is ringing alarm bells over China’s recent clampdown on exports of rare earth elements and magnets—crucial materials used in a wide range of vehicle components.

The global auto industry has been rocked by China's decision to restrict exports of rare earth magnets that are crucial to making vehicles. Beijing is using this as a key weapon in its trade war with Washington.