US to plan joint response with India, allies on China's rare earth curbs: Bessent

US Treasury Secretary Scott Bessent on Wednesday said Washington will work closely with its allies, including India, to prepare a "fulsome group response" to China’s latest export restrictions on rare earth minerals. The announcement comes amid tensions between the world’s two largest economies over control of critical mineral supplies, which are essential for technology, energy, and defence production.

Speaking to CNBC, Bessent said, "We’re going to be speaking with our European allies, with Australia, with Canada, with India and the Asian democracies. And we’re going to have a fulsome group response to this because bureaucrats in China cannot manage the supply chain or the manufacturing process for the rest of the world."

Bessent comments come after Beijing’s decision to impose export curbs on rare earth materials, citing national security concerns and accusing foreign companies of using Chinese minerals for military purposes.

CHINA TIGHTENS CONTROL OVER RARE EARTH SUPPLIES

China holds a near-monopoly over the global rare earth market. It is responsible for about 70 per cent of mining and roughly 90 per cent of the processing of these minerals, which are crucial in the manufacturing of electronics, automobiles, renewable energy systems, and defence equipment.

The United States, the European Union, and India remain among the top importers of Chinese rare earth metals. Beijing’s decision to restrict exports has raised fears of global supply disruptions.

Following Beijing's announcement, US President Donald Trump lashed out at Beijing’s decision, threatening 100 per cent tariffs on Chinese goods.

The White House called China’s decision an attempt to weaponise its dominance in rare earths to gain leverage in geopolitical disputes.

"This is China versus the world," Bessent said in an interview with Fox Business earlier this week. "They have pointed a bazooka at the supply chains and the industrial base of the entire free world," he added.

Bessent flagged that Washington expects coordinated support from partner nations, including India, in addressing China’s export curbs. "We have already been in touch with the allies. We will be meeting with them this week and, you know, I expect that we will get substantial global support from the Europeans, from the Indians, from the democracies in Asia," he said.

At the same time, Washington has imposed an additional 50 per cent tariff on imports from India, even as it continues to refer to New Delhi as a "key partner" in securing supply chains. India itself possesses limited reserves of rare earths and continues to face domestic manufacturing challenges.

TRUMP TEMPERS RHETORIC AFTER THREATENING CHINA

However, President Trump appeared to soften his tone shortly after threatening fresh tariffs. In a post on his social media platform, Truth Social, Trump wrote that China’s economic troubles would "all be fine" and expressed a willingness to help Beijing recover.

"Don’t worry about China, it will all be fine!" Trump said. "Highly respected President Xi just had a bad moment. He doesn’t want depression for his country, and neither do I. The USA wants to help China, not hurt it!!!"

The 100 per cent tariff proposal on Chinese imports, which Trump had suggested, will take effect by November 1.

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With inputs from agencies