aacj

June 20 2025

Trump delays Iran action?; China rare-earth squeeze; Trump's Guard authority upheld; Hybrids popularity surge; Starship test explosion

Greg Loving

20 Jun 2025 • 6 min read

China’s move to restrict rare-earth magnets was felt acutely through the global automotive, electronics and defense industries. PHOTO: KATIE HAYES LUKE FOR WSJ

TRUMP DELAYS IRAN ACTION, CITES "SUBSTANTIAL CHANCE OF NEGOTIATIONS"

BEIJING FLEXES RARE-EARTH DOMINANCE AS EXPORTS FALL SHARPLY

FEDERAL COURT OVERRULES JUDGE, AFFIRMS TRUMP'S NATIONAL GUARD AUTHORITY

AUTO INDUSTRY SEES RESURGENCE IN HYBRID POPULARITY

SPACEX STARSHIP EXPLODES IN TEST, MARS AMBITIONS FACE SETBACK

TRUMP DELAYS IRAN ACTION, CITES "SUBSTANTIAL CHANCE OF NEGOTIATIONS"

President Donald Trump will wait as much as two weeks to decide whether to attack Iran’s nuclear program, the White House said Thursday, dialing back rhetoric about Iran having missed its window to reach a deal. In a statement read by his press secretary, Trump said he believes there is now a “substantial chance of negotiations” with Iran. White House officials are watching European talks with Iran scheduled for Friday as Trump suggested that he would wait to let discussions unfold. In recent days, Trump’s comments on Iran have been bellicose, including a social media post Monday warning Iranians to “immediately evacuate Tehran,” the nation’s capital with 10 million residents, and a statement Wednesday that he was “out of patience.” Editors note: this either clever deception and we’ll see US strikes this weekend, or as we analyzed yesterday, Trump is under no time pressure

Joke circulating in Israel at the moment: pic.twitter.com/jE7CaMFQgK
— Joel Pollak (@joelpollak) June 19, 2025

BEIJING FLEXES RARE-EARTH DOMINANCE AS EXPORTS FALL SHARPLY

China’s exports of rare-earth magnets plummeted after it imposed controls on their overseas sale, emphasizing Beijing’s dominance of a critical input into electric vehicles and jet fighters that has taken center stage in tensions with the U.S. Total export volumes of rare-earth magnets from China fell 74% in May from a year earlier, according to a Wall Street Journal analysis of Chinese customs data. That was the biggest percentage decline on record dating back to at least 2012. Exports had fallen 45% in April in year-over-year terms. The 1.2 million kilograms of rare-earth magnets exported in May marked the lowest level since February 2020, during the Covid pandemic. Exports of rare-earth magnets to the U.S. slowed to a trickle, declining 93% in May from a year earlier to roughly 46,000 kilograms. That followed a 59% year-over-year drop in April. The figures released Friday are the first to show the extent to which Beijing’s curb on rare-earth magnets further choked off supplies to the world in May, which drew the ire of the Trump administration and brought the two countries back to the negotiation table earlier this month.

WSJ

FEDERAL COURT OVERRULES JUDGE, AFFIRMS TRUMP'S NATIONAL GUARD AUTHORITY

A federal appeals court on Thursday cleared the way for President Trump to keep using the National Guard to respond to immigration protests in Los Angeles, declaring that a judge in San Francisco erred last week when he ordered Mr. Trump to return control of the troops to Gov. Gavin Newsom of California. In a unanimous, 38-page ruling, a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit held that the conditions in Los Angeles were sufficient for Mr. Trump to decide that he needed to take federal control of California’s National Guard and deploy it to ensure that federal immigration laws would be enforced. A lower-court judge had concluded that the protests were not severe enough for Mr. Trump to use a rarely-triggered law to federalize the National Guard over Mr. Newsom’s objections. But the panel, which included two appointees of Mr. Trump and one of former President Joseph R. Biden Jr., disagreed with the lower court.

NYT

AUTO INDUSTRY SEES RESURGENCE IN HYBRID POPULARITY

Not so long ago, it seemed that the heyday of hybrids had come and gone. As Tesla and the potential of electric vehicles grabbed the imaginations of drivers and automakers, hybrids appeared destined to be remembered as an interim step on the way toward a fully electric, emissions-free future. Just four years ago, for example, General Motors set a goal of ending production of all internal combustion models by 2035, and all but eliminated hybrids from its future product plans. Other manufacturers also bet heavily on electric vehicles and scaled their hybrid plans. But then a funny thing happened. Car shoppers balked at the high prices of fully electric models and the challenges of charging them. In the last few years, sales of electric vehicles have grown at a much slower rate than automakers once expected. And hybrids have stepped in to fill the gap, accounting for a large and growing share of new car sales. A few large automakers dominate the sale of hybrids. Nearly half the cars and trucks that Toyota and its luxury brand, Lexus, sold in the first five months of the year were hybrids — and sales of those vehicles were up about 40 percent from a year earlier. Ford Motor’s hybrid sales rose 31 percent in the same period. Honda is on track this year for its highest hybrid sales ever, and the hybrid versions of its Accord sedan and CR-V sport utility vehicle now outsell the gasoline-only models.

NYT

SPACEX STARSHIP EXPLODES IN TEST, MARS AMBITIONS FACE SETBACK

SpaceX’s Starship spacecraft exploded during a routine test, sending a fireball into the night sky and marking the latest setback in what has become an increasingly important bet for Elon Musk. The spaceship, which the billionaire hopes one day will send people to Mars, “suffered a catastrophic failure and exploded” shortly after 11 p.m. local time Wednesday in Texas, according to local authorities in Cameron County. No injuries were reported. SpaceX described the explosion as major, and said it occurred as the company was preparing to test a Starship spacecraft it was planning to use during a coming flight test. The company said there was damage near the test stand, and that the explosion started several fires nearby. It asked the public not to approach the area while it worked to ensure it was safe and investigate why the incident occurred. SpaceX said initial analyses showed a pressurized tank in the vehicle’s nose cone potentially failed. “Just a scratch,” Musk posted on his X social–media platform. SpaceX is making an enormous bet on Starship, which stands roughly 400 feet tall at liftoff. The company wants to make the vehicle fully and rapidly reusable.

WSJ

Insane explosion at static test for Space X Starship pic.twitter.com/1OJacK0q4V
— Paul Prosise (@PaulProsise) June 19, 2025

June 20, 1941: Ford signs first contract with autoworkers’ union

After a long and bitter struggle on the part of Henry Ford against cooperation with organized labor unions, Ford Motor Company signs its first contract with the United Automobile Workers of America and Congress of Industrial Organizations (UAW-CIO) on June 20, 1941.

Hutchinson

Salina

McPherson / Lindsborg