United States and India boost mining ties after trade pact

Wednesday 04 - 11:50

By: Dakir Madiha

United States and India boost mining ties after trade pact

U.S. Secretary of State Marco Rubio met with India's External Affairs Minister S. Jaishankar in Washington on Tuesday to celebrate a new trade agreement slashing American tariffs on Indian goods and expanding cooperation on critical minerals and energy security.

The State Department talks followed an announcement by President Donald Trump and Prime Minister Narendra Modi of the deal, which cuts U.S. duties on Indian exports from 50% to 18%. This eliminates a 25% reciprocal tariff and a separate 25% penalty imposed over India's purchases of Russian oil.

Rubio and Jaishankar discussed formalizing bilateral efforts in exploring, mining, and processing critical minerals. They stressed the need for the democracies to unlock economic opportunities and advance shared energy security goals.

In return, India will drop its own tariffs and non-tariff barriers on U.S. goods. Modi committed to buying over $500 billion in American energy, technology, agriculture, and other products, per Trump. A joint framework agreement is due soon, encompassing existing projects and new spending on data centers and energy.

Trump claimed India agreed to halt Russian oil purchases, though Modi offered no explicit confirmation. India remains a top buyer of discounted Russian crude since Moscow's Ukraine invasion.

Jaishankar's visit aligns with the first Ministerial Conference on Critical Minerals hosted by Rubio at the State Department. It draws delegations from over 50 countries to bolster supply chain resilience for minerals vital to defense, electronics, and clean energy tech.

The U.S. circulated a draft framework urging participants to adopt standards for mining, processing, and recycling critical minerals, aiming to counter China's dominance in global extraction and refining. Jaishankar also met Treasury Secretary Scott Bessent to strengthen economic links and secure supply chains.

The trade breakthrough ends months of friction after Trump hiked tariffs to 50% amid stalled talks last year. The new 18% rate gives India a slight edge over rivals like Vietnam and Bangladesh, facing 20% duties.

This comes a week after India sealed its largest-ever free trade deal with the European Union, covering nearly all goods with the 27-nation bloc. Modi called it the "mother of all agreements," forging a free trade zone spanning economies with about 25% of global GDP.