Ford CFO Sherry House also discussed what the Dearborn-based automaker is telling Wall Street about upcoming headwinds.

Markets cheered in early May when the US and China agreed in Geneva to lower tariffs and other barriers. But after a few weeks, the shine started to come off that deal, with China accusing the US of violating it with new restrictions and the US saying China failed to honor promises on rare earths.

Gracelin Baskaran, Center for Strategic and International Studies director of the critical minerals security program, and Wells Fargo's Colin Langan, join 'Power Lunch' to discuss the latest impact of China's rare earth restrictions.

Stillwater, Oklahoma — Buried on Round Top Mountain in a remote part of West Texas are rare earth minerals, the metals that could power America's future. Rare earths are a group of 17 elements used in many of the world's most advanced technologies, including semiconductors, electric cars and guided missiles used by the military.

Automakers and parts suppliers are shifting supply chains and warning of production shutdowns amid a Chinese crackdown on rare earth metals and magnets.

While China has resumed exports of its rare earth magnets, applications by domestic auto manufacturers—including by subsidiaries of multinational companies that have received approvals for their foreign arms—remain stuck.

Suzuki Motor Corp. shares extended a slump after the automaker halted production of a popular car model, with local media reporting China’s export restrictions on rare earths are behind the disruption.