Nissan feels the effect of US-China trade war

Nissan's upcoming third-generation Leaf electric vehicle is poised to impress with its compact design and enhanced efficiency. The new model promises to offer a more spacious interior while incorporating advanced thermal management for its battery system. However, recent developments have led the automaker to scale back its production plans. Due to China's new restrictions on the export of vital rare-earth elements, which are essential for electronics and electric motors, Nissan is forced to reduce the number of Leafs it will manufacture. According to reports from Reuters, these export limitations have resulted in a shortage of necessary components for the Leaf, prompting a decrease in output from Nissan's factory in Japan. This situation is not unique to Nissan; fellow Japanese carmaker Suzuki previously halted production of one of its models due to similar challenges stemming from the Chinese ban. China implemented these export restrictions in April as part of its response to the ongoing global trade tensions that escalated during President Trump's administration. Currently, US automakers can apply for short-term export licenses that are valid for six months, but these measures may not be enough to mitigate the impact on production.