China and United States Continue Productive Trade Talks in London
U.S. Treasury Secretary Scott Bessent confirms ongoing negotiations aimed at extending recent tariff reductions.
LONDON, UNITED KINGDOM.
Trade negotiations between China and the United States are proceeding productively in London, according to U.S. Treasury Secretary Scott Bessent, who spoke before his departure back to Washington on Tuesday evening.
Bessent, leading the U.S. delegation, attended meetings that began the previous day and are set to continue without him as Secretary of Commerce Howard Lutnick and U.S. Trade Representative Jamieson Greer will remain to engage with the Chinese delegation led by Vice Premier He Lifeng.
These discussions aim to extend the truce reached last month in Geneva, which saw both economic giants significantly reduce their respective tariffs over a period of 90 days.
"I am receiving good reports.
Everything is going well.
But China is not easy," President Donald Trump remarked on Monday.
This positive sentiment was reiterated by Commerce Secretary Howard Lutnick, who stated on Bloomberg Television on the second day of talks, "We talked all day yesterday and I expect we’ll talk again today.
Everything is going well."
In Geneva, Washington agreed to reduce tariffs on Chinese products from 145% to 30%, in exchange for Beijing lowering tariffs from 125% to 10% for the same three-month period.
Both delegations convened on Tuesday at Lancaster House, located in central London, near Buckingham Palace and Trafalgar Square.
Key sticking points in the negotiations include matters related to China’s rare earth elements, as the United States expects an increase in the pace of exports of these strategic metals, the flow of which has slowed since Trump initiated the trade war in early April.
Kevin Hassett, Trump’s chief economic advisor, noted on CNBC, "In Geneva, we agreed to reduce our tariffs and they allow the export of magnets and rare earths that we need," highlighting concerns that while China has permitted these exports, they have occurred at a rate considered suboptimal by U.S. businesses.
These Chinese raw materials are vital for electric vehicle batteries, wind turbines, and defense systems (missiles, radars, satellites).
In response, China is urging the United States to reconsider several export controls on its products.
When asked about this possibility, Trump responded with an ambiguous "We'll see."
Market sentiments showed signs of stabilization on Monday, driven by rumors that the United States may be willing to make concessions.
Ipek Ozkardeskaya, an analyst at Swissquote, noted that investors are keen to latch onto any positive news regarding trade.
Kathleen Brooks, research director at XTB, echoed the sentiment, pointing out that the mere continuation of negotiations is a positive development.
This meeting follows a phone call on Thursday between the U.S. and Chinese presidents, described as "very positive" by Trump, while Chinese President Xi Jinping urged his counterpart to “correct the course of the great ship of U.S.-China relations,” according to Chinese media reports.
Recent tensions escalated sharply when Trump accused Beijing of failing to adhere to the terms of the de-escalation agreement signed in Geneva.
As China works to normalize relations with Washington, its government has initiated discussions with other partners to form a united front against the United States.
Trade negotiations between China and the United States are proceeding productively in London, according to U.S. Treasury Secretary Scott Bessent, who spoke before his departure back to Washington on Tuesday evening.
Bessent, leading the U.S. delegation, attended meetings that began the previous day and are set to continue without him as Secretary of Commerce Howard Lutnick and U.S. Trade Representative Jamieson Greer will remain to engage with the Chinese delegation led by Vice Premier He Lifeng.
These discussions aim to extend the truce reached last month in Geneva, which saw both economic giants significantly reduce their respective tariffs over a period of 90 days.
"I am receiving good reports.
Everything is going well.
But China is not easy," President Donald Trump remarked on Monday.
This positive sentiment was reiterated by Commerce Secretary Howard Lutnick, who stated on Bloomberg Television on the second day of talks, "We talked all day yesterday and I expect we’ll talk again today.
Everything is going well."
In Geneva, Washington agreed to reduce tariffs on Chinese products from 145% to 30%, in exchange for Beijing lowering tariffs from 125% to 10% for the same three-month period.
Both delegations convened on Tuesday at Lancaster House, located in central London, near Buckingham Palace and Trafalgar Square.
Key sticking points in the negotiations include matters related to China’s rare earth elements, as the United States expects an increase in the pace of exports of these strategic metals, the flow of which has slowed since Trump initiated the trade war in early April.
Kevin Hassett, Trump’s chief economic advisor, noted on CNBC, "In Geneva, we agreed to reduce our tariffs and they allow the export of magnets and rare earths that we need," highlighting concerns that while China has permitted these exports, they have occurred at a rate considered suboptimal by U.S. businesses.
These Chinese raw materials are vital for electric vehicle batteries, wind turbines, and defense systems (missiles, radars, satellites).
In response, China is urging the United States to reconsider several export controls on its products.
When asked about this possibility, Trump responded with an ambiguous "We'll see."
Market sentiments showed signs of stabilization on Monday, driven by rumors that the United States may be willing to make concessions.
Ipek Ozkardeskaya, an analyst at Swissquote, noted that investors are keen to latch onto any positive news regarding trade.
Kathleen Brooks, research director at XTB, echoed the sentiment, pointing out that the mere continuation of negotiations is a positive development.
This meeting follows a phone call on Thursday between the U.S. and Chinese presidents, described as "very positive" by Trump, while Chinese President Xi Jinping urged his counterpart to “correct the course of the great ship of U.S.-China relations,” according to Chinese media reports.
Recent tensions escalated sharply when Trump accused Beijing of failing to adhere to the terms of the de-escalation agreement signed in Geneva.
As China works to normalize relations with Washington, its government has initiated discussions with other partners to form a united front against the United States.
