China vs the World: US expects support from India, other allies in rare earths trade tensions

America seeks global backing against China’s rare earth export curbs. Treasury Secretary Scott Bessent expects support from India and European democracies. China’s actions are seen as provocative. Former President Donald Trump previously threatened tariffs. China dominates rare earth mining and processing. The US has imposed tariffs on India.

Indian exports of key goods to the United States saw a significant drop in August. Labour-intensive products like textiles, leather, and jewellery experienced a downturn. This follows the imposition of tariffs by Washington on New Delhi. Shipments of marine products, tyres, and garments also declined. Even kitchen staples like tea and spices faced reduced exports.

India’s mobile phone exports surged by 95% year-on-year in September, reaching over $1.8 billion despite a historically lean period. For April-September, exports hit $13.5 billion, with the US being the largest destination, accounting for nearly 70% of the total. This growth highlights India’s strengthening mobile manufacturing ecosystem and global reliability.

India and Taiwan have asked the WTO to postpone a decision on import duties until April 2026. Both nations are working to resolve the issue through talks. This delay aims to facilitate a mutual agreement. The WTO’s dispute settlement body will consider this request soon. The ruling concerns duties on certain information and technology products.

Brazil’s Ambassador welcomed India’s potential ethanol exports, emphasizing its role in making ethanol a global commodity. The two nations are deepening bioenergy cooperation, focusing on sustainable aviation fuel and higher ethanol blending targets, with Brazil sharing its extensive experience in ethanol integration.

The Reserve Bank of India has amended FEMA regulations, allowing exporters to hold foreign exchange proceeds in Gujarat’s Gift City for up to three months. This move provides operational relief and greater flexibility in repatriating funds, aligning with USD-INR trends. Previously, funds had to be repatriated by the end of the following month.

India and Canada have agreed on a new roadmap for bilateral relations following talks between their foreign ministers in New Delhi. Canadian Foreign Minister Anita Anand’s visit aims to reset ties, with discussions focusing on enhanced cooperation in trade, energy, technology, agriculture, and people-to-people connections.

Indian trade negotiators are heading to the US this week for talks on a bilateral trade agreement, with both sides hopeful of concluding the first phase by year-end. Discussions are progressing positively, and New Delhi may also increase natural gas purchases from the US to address the trade gap.

India and the US are nearing a trade deal, with optimism high for a fall conclusion. A delegation heads to Washington this week to finalize market access, energy, and tech trade. Simultaneously, India’s Free Trade Agreement talks with the EU are progressing, though carbon adjustment and sector-specific issues remain. These efforts bolster India’s global economic […]