July 7 (Reuters) - China's export restrictions on rare earths brought parts of the global auto supply chain to a halt and U.S. President Donald Trump to the negotiating table. But at home, they're a big headache for companies already struggling with a slow economy.

China’s exports of rare-earth products jumped in June, pointing to a potential pickup in magnet supplies after government-imposed curbs that proved to be Beijing’s most powerful weapon in its trade war with the Trump administration.

China’s dominance in the rare earth supply chain has historically given it leverage over global markets. Its recent export restrictions, however, are having a lasting negative effect on the sector. Chinese magnet producers are now facing piling inventories while also dealing with a failing economy and weakened EV demand.