As Tariff Tensions Escalate, US Sees India as Key Ally Against China in Rare Earths Dispute
In a sharp rebuke to Beijing, US Treasury Secretary Scott Bessent has accused China of weaponizing its control over rare earth minerals key components used in electric vehicles, electronics, and defence manufacturing calling the situation “China versus the world.”
Speaking to Fox Business on Monday, Bessent accused President Xi Jinping’s government of “pointing a bazooka at the supply chains and industrial base of the entire free world.” He added, “We’re not going to have it. China is a command-and-control economy, but they are neither going to command nor control us.”
Bessent confirmed that the US has already reached out to international partners for support, naming India as a key ally amid these rising trade tensions. “We will be meeting with allies this week… and I expect substantial global support from the Europeans, the Indians, and democracies in Asia,” he said, though he did not elaborate on what form this collaboration might take.
His comments came shortly after President Donald Trump announced additional 100% tariffs on Chinese goods, following Beijing’s decision to impose export restrictions on rare earth minerals. China remains the world’s top producer of these critical resources, but Bessent accused Beijing of trying to “export its way out of a recession.”
Tensions between the US and China have once again flared after a brief period of calm following trade talks. Trump has hinted at cancelling his planned meeting with President Xi at the upcoming Asia-Pacific Economic Cooperation (APEC) summit. Beijing’s response was defiant, declaring that it would “fight to the end” of the tariff war while accusing Washington of double standards.
Caught in the crossfire, India which faces a 50% US tariff on exports finds itself under increasing pressure to align with Washington. Despite renewed outreach to China by Prime Minister Narendra Modi during his recent visit, the US continues to describe India as a “trusted partner.” Trump has often mixed tough talk on tariffs with personal praise for Modi, calling him a “great leader and good friend.”
Meanwhile, both countries are moving forward with negotiations for a long-awaited Bilateral Trade Agreement (BTA). Talks are expected to continue later this week when a high-level Indian delegation visits Washington. According to PTI, five rounds of talks have already been held since February 2025, when Trump returned to office, though progress has been slowed by tariff-related friction.