America has decided to reduce its dependence on China for rare earth minerals and is now looking at India as a crucial partner. Following China's export restrictions, the US has warned of 100% import tariffs. Experts believe this could be a significant opportunity for India in terms of investment and technological cooperation.
Rare earths tension: Tensions between the US and China over rare earth minerals have escalated. China recently imposed restrictions on the export of some critical minerals, leading the US to warn of imposing 100% import tariffs. Amidst this conflict, the US has placed its trust in India, viewing it as a new strategic partner. US Treasury Secretary Scott Bassant stated that this battle is no longer just US versus China, but China versus the entire world. Given India's existing rare earth reserves and technical potential, this could be a major opportunity for the country.
America's Counterattack, Threat of 100% Tariffs
In response to China's actions, the US has adopted a firm stance. Washington has warned that if China does not soften its policy, the US could impose 100 percent import tariffs against it. US officials state that this is not merely an economic battle but a strategic one.
US Treasury Secretary Scott Bassant recently stated that this is no longer just a US versus China conflict, but a battle of China versus the entire world. He added that the US will not face this challenge alone, and alliances will be formed with democratic countries in India, Europe, and Asia.
American Hopes Rest on India
America's focus is now on India. India possesses significant reserves of rare earth minerals, particularly in states like Andhra Pradesh, Rajasthan, Kerala, and Jharkhand. Currently, these resources are being utilized to a limited extent, but with technology and investment, India could play a major role in this sector.
US Treasury Secretary Bassant stated that discussions with India are ongoing, and he is confident that India will help balance this global supply chain. He added that China aims to control the world's technological supply, but the US, together with its allies, will end this dependence.
Both a Challenge and an Opportunity for India
India is already facing global trade pressures. Recently, the Trump administration imposed a 25 percent general tariff on India and an additional 25 percent duty on Russian oil purchases, bringing the total tariff to 50 percent. This has impacted India's export sector.
However, the same pressure can now transform into an opportunity. If America wishes to distance itself from China, it will need a stable and reliable partner like India. This is a chance for India to become a major partner for the US not only in the energy sector but also in minerals and technological supply.
India has the potential to improve the exploration and processing of rare minerals. If investment in this direction increases, the country can not only meet its domestic needs but also play a crucial role in the global supply chain.
Steps Towards a New Partnership
In recent months, India and the US have held several rounds of discussions on energy, mineral, and defense cooperation. Talks are also underway regarding a “Critical Minerals Partnership” between the two countries. Under this initiative, the US could invest in rare earth exploration and processing technology in India.
Furthermore, India is also prioritizing the mineral sector in its domestic policy. The government has outlined a ‘Critical Minerals Mission’ aimed at enhancing rare earth exploration and refining capabilities.
A Sign of Growing Distance from China
This stance by the US and India's potential partnership point towards a new era for global supply chains. China's monopolistic policy is now becoming a challenge for it, as several countries worldwide are jointly seeking alternatives.
India is currently at a juncture where, by providing strategic direction to its energy and mineral policy, it can not only strengthen its economy but also emerge as a reliable supplier among global partners.
