Can India Do a Rare Earth on Baryte Export?

Even a calibrated restriction, rather than a ban, would send a strong signal that India recognises it as a strategic asset and intends to deploy it judiciously in the national interest

- KARAN SINGH

ON AUGUST 27, the US imposed reciprocal tariffs of 50% on Indian exports. While the first tranche of 25% was enforced on August 7, citing the US's trade deficit with India, an additional 25% was explicitly linked to India's continued procurement of Russian oil. Together, these duties have now come into effect, substantially increasing the tariff burden on Indian exports and placing them at a disadvantage compared to regional competitors such as China, Vietnam, and Thailand.

While broad categories of Indian products have been subjected to higher tariffs, certain inputs critical to the US economy have been exempted from any tariffs. One such example is baryte—a seemingly low-profile mineral, but one that is indispensable to the US oil and gas industry. The decision to exempt barytes reflects a calculated recognition of its importance to sustaining the US's energy exploration programme. Despite holding extensive reserves domestically (close to 150 million tonnes), the US continues to import barytes consistently to preserve its own stockpile. By contrast, India has less than 23 million tonnes of reserves left, yet we continue to export aggressively, accounting for nearly 48% of total US baryte imports.