Current conditions: More than 28 million people in the Ohio Valley are at risk of severe thunderstorms today • Intense heat in Vietnam’s Ho Chi Minh City may be behind dozens of cases of food poisoning linked to street vendors • Parts of Michigan’s Upper Peninsula could see up to 10 inches of snow by late Tuesday.
THE TOP FIVE
1. China suspends exports of critical minerals, magnets
Manufacturers dependent on critical minerals and magnets are bracing for shortages and production delays after China suspended exports last week, in apparent retaliation for tariffs imposed by the Trump administration. The pause comes as China implements a new regulatory system, although it is expected to cut off shipments to some U.S. companies indefinitely, The New York Times reports.
China produces nearly all of the world’s heavy rare earth metals and rare earth magnets, which are crucial components for electric car motors, as well as drones, missiles, and spacecraft. But while rare earth magnets make up a small portion of China’s exports and the pause will cause “minimal economic pain” to Beijing, there is “potential for big effects in the United States and elsewhere,” the Times writes. Emergency stockpiles of heavy rare earth metals and magnets vary by company, but many American manufacturers have historically kept little to no extra inventory on hand.
2. GM pauses production of its electric delivery van citing ‘market demand’
GM announced Friday that it is pausing production of its electric Chevrolet BrightDrop delivery van through October, citing “market demand and rebalancing inventory.” The decision will see the automaker temporarily lay off 1,200 workers at its assembly plant in Ontario, Canada, with a permanent reduction of 450 workers expected when production resumes at lower levels in the fall. “This is a crushing blow,” Lana Payne, the president of Unifor, Canada’s largest private sector union, said in a statement. Last year, the Ontario plant produced 3,500 BrightDrop vans, of which GM sold 1,529; this year, it has sold just 247. The Detroit Free Press cites the vehicle’s $74,000 price tag as a reason for lagging sales, while Electrek points to the uncertainty of Trump’s tariffs for “causing companies like GM to expect more pain in the near term.”
3. Trump plans to create a federal wildfire agency: report
The Trump administration is reportedly considering an executive order calling for creating a new wildland fire agency focused on the “immediate” suppression of wildfires. While many organizations and industry insiders have long awaited reforms in how the federal government combats wildfires — including pushing for the creation of a National Wildland Fire Service — the news was also met by concerns that the order could loosen certain requirements, especially for aerial firefighting.
Washington State’s Commissioner of Public Lands Dave Upthegrove warned The Spokesman-Review in a statement that “If the draft is implemented as currently written it will, among other things, eliminate critical safety measures that protect aerial firefighters,” including independent inspections of tankers and planes that perform surveillance by the Forest Service. The Trump administration has responded to speculation over the EO by saying, “The media should stop reporting on ‘drafts’ with unknown origins.”
4. Goldman Sachs: Oil and gas companies ‘should be a cornerstone of ESG funds’
Michele Della Vigna, the head of natural resources research at Goldman Sachs, told CNBC that investors should consider including oil and gas stocks as a “cornerstone” of their ESG portfolios. While fossil fuel companies have traditionally been excluded from investments focused on “environmental, social, and governance” factors, Della Vigna likened a reappraisal of oil and gas to the way that some ESG funds have started to shift to include defense stocks. “This energy transition will be much longer than expected,” he said, adding that fossil fuel companies are major investors in low-carbon technologies and “we will not have affordable energy” otherwise.
The White House has singled out law firms with a focus on ESG and promoted support of coal and oil, but despite the pressures, others who spoke to CNBC remained skeptical of Della Vigna’s argument. “We can see the negative impacts of oil and gas,” Ida Kassa Johannesen, the head of commercial ESG at Saxo Bank, said, adding, “I mean, why would we want to see more fossil fuels? Most ESG investors would not.”
5. Noboa, Ecuadorian president with mixed environmental record, wins reelection
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Center-right President Daniel Noboa won reelection in Ecuador on Sunday, earning a full four-year term after taking power in snap elections in November 2023. While Ecuador has been an international leader on environmental issues, famously recognizing the legal rights of nature in its 2008 constitution, Noboa has a more mixed record, with critics claiming he has prioritized the nation’s economy over proposals for emissions reductions. Noboa notably has welcomed an anticipated $42 billion in foreign investment in oil production over the next five years, even as a 2024 national referendum blocked the government’s plan to restart drilling in Yasuní National Park. (Noboa has said he’s considering a moratorium on that referendum.) The impacts of a warmer climate have been immediately felt in Ecuador, however; the nation endured blackouts last year due to the impacts of a drought on the nation’s hydroelectric plants, and Noboa has pledged rainwater harvesting and storage projects during his second term.
THE KICKER
On Friday, 63 nations — including China, Brazil, and much of Europe, but excluding the United States — voted to approve a first-of-its-kind tax on greenhouse gas emissions by ships in the shipping industry.
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