Welcome to the Daily 5 report for Wednesday, Nov. 12.
It seems counterintuitive. The trade deals that will help the U.S. industrial base get China's rare-earth material might hurt the supply chain in the long run.
Here's why. The recent U.S. trade policy experience is riddled with ups and downs and stops and starts. No one knows what might trigger the next unraveling of the supply chain from China.
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But the trade deal that might ease access now could delay the massive investment needed for the U.S. to develop domestic resources and seal agreements with friendly nations.
Automotive News reporter Molly Boigon explains here.
These rare-earth materials are crucial to the U.S. automotive industry and national defense because of how they create superpowerful magnets and are used in other components.
Boigon, one of our trade experts, also takes a look at the latest rare-earth materials supply agreement between the U.S. and China.
There's a lot of confusion. The deal lowers tariffs on Chinese imports and lessens rare-earth export restrictions. However, vague language describes the changes to restrictions. Analysts say they are unsure which minerals remain controlled and how.
Boigon's story says that even for tariff applications, which are more straightforward, companies are awaiting U.S. Customs and Border Protection guidance on Chinese imports. The U.S. is maintaining a 10 percent reciprocal tariff on Chinese imports and is halving a duty intended to reduce fentanyl trafficking. The White House said those rates are "effective Nov. 10, 2025."
"What's very unclear, and this has been happening with every change that has been announced this year, is, until customs actually issues guidance, there's no way of knowing: What does Nov. 10 apply to? Does this mean shipments arriving after Nov. 10? Does this mean shippers departing after Nov. 10? Customs entries being filed after Nov. 10?" said Robert Khachatryan, CEO of Freight Right Global Logistics.
We will continue watching this story very closely.
Meanwhile, be sure to check out this report on where EV prices are headed, an update on the VW-Rivian software joint venture and McLaren's latest product plans.
That's all for now. Enjoy the rest of your day. If you want to view this story on your browser click here.
— Jerry Hirsch, senior editor
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