| Photo: Getty Images (Marcus Yam/Los Angeles Times) |
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Good morning, Quartz readers! |
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What the markets have in store: a high-stakes policy decision and economic projections from the Fed, plus earnings from Accenture, CarMax, Kroger, and Darden Restaurants. |
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Feeling spendy? According to the most recent consumer survey, buyers are feeling better about the U.S. economy — in the short term, at least, as some economic concerns loom large. |
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Processing a rivalry. AMD wants to take Nvidia’s throne (and market share) and thinks its latest chips and strategic partnerships will help the company do just that. |
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Apple shifts its core. It’s now getting 97% of its U.S.-sold iPhones from India as it continues to navigate its supply chain away from dependence on China amid trade war concerns. |
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Model X-tra. Tesla unveiled upgraded versions (with new features, namely: soundproofing) of its popular S and X models — which come with a $5,000 hike to their prices. |
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Bangtanomics: K-pop group BTS’ long-awaited return — after the members completed military service — will have an outsized impact on South Korea’s GDP and the global economy. |
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If you’ve never heard of dysprosium, don’t worry — you’re not alone. But your EV, your iPhone, and the F-35 jet buzzing overhead are well acquainted. Dysprosium is one of the obscure but essential “rare-earth elements” (REEs) that power everything from magnets in Teslas to missile guidance systems — and right now, they’re one of the quietest frontlines in the U.S.-China trade war. |
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The minerals aren’t actually rare, but the ability to process them is — and China has that part on lock. As of this year, Beijing refines nearly all of the world’s heavy REEs and 90% of the light ones. That control just got sharper: After adding key REEs to its dual-use export control list and throttling magnet exports, China has left U.S. automakers and defense contractors scrambling. Tesla reportedly saw delays; some suppliers are reportedly in “full panic.” |
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Washington’s response? Rumors of $400-plus million in Defense Production Act funds, a growing rare-earth mine in California, and whispers of a Strategic Rare Earth Reserve. But analysts say it’ll take years before the U.S. can compete — and in the meantime, China’s playing geopolitical chess with a six-month export permit timer. |
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The Trump administration is turning up the heat — and the tariffs — on your next household appliances. |
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In a fresh twist on an old trade war, the White House announced that tariffs will be slapped on imported appliances made with steel, including washer-dryers, fridge-freezers, dishwashers, and cooking stoves. The levies, dubbed “steel-derivative product” tariffs by the Commerce Department, go into effect June 23. If it sounds like déjà vu, you’re not wrong — this is basically “Trump Trade War: Home Edition.” |
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The announcement follows last week’s doubling of steel and aluminum tariffs to 50%. President Donald Trump hinted that auto tariffs may be next: “The higher you go, the more likely it is they build a plant here [in the U.S.],” he said, presumably referring to car manufacturers and not Whirlpool. |
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Economists, meanwhile, are shaking their heads — again. Tariffs tend to function as taxes on consumers, with price hikes arriving not immediately, but eventually, like a slow-motion punch from a heavyweight boxer. Though May’s Consumer Price Index clocked in at a manageable 2.4% year-over-year, analysts expect a summer surge as inventories dwindle and tariff costs ripple through the supply chain. |
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This isn’t Trump’s first load of appliance-related tariffs. Back in 2018, he imposed similar duties on imported washing machines. It did spark some domestic hiring, but at a sudsy cost: One analysis found each job created came out to $817,000 — paid for by American shoppers. |
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