U.S.-China trade talks in London begin second day, says U.S. Treasury spokesperson

U.S.-China trade talks in London begin second day, says U.S. Treasury spokesperson

High-level delegations from the United States and China have resumed trade talks in London for a second day on Tuesday, following the initial round of negotiations held on Monday. The talks, which are aimed at de-escalating the ongoing trade dispute between the two economic giants, have taken on a more pressing tone due to recent developments in their trade policies and export controls.

The first day of talks, held at Lancaster House in London, saw U.S. and Chinese officials engage in discussions that may have laid the groundwork for potential agreements. The U.S. delegation, led by Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamieson Greer, met with the Chinese contingent, headed by Vice Premier He Lifeng and Commerce Minister Wang Wentao [3].

The primary focus of the talks is expected to be on rare earth minerals and other critical components that have been at the center of the trade dispute. China's April decision to restrict exports of rare earths, which are essential for various industries, including electric vehicles, aerospace, and advanced electronics, has caused significant disruptions in global supply chains [2]. The U.S. delegation has been vocal about its desire to see these restrictions lifted, with U.S. officials indicating that they are willing to ease export controls in exchange for China's cooperation [1].

In addition to rare earths, the talks are also expected to cover other contentious issues, such as the high import taxes imposed by both countries and the broader trade war dynamics. The U.S. has paused some of its highest tariffs against China for 90 days to allow for negotiations, but the expiration of this period is approaching in August, which adds a sense of urgency to the talks [2].

The outcome of these negotiations could have significant implications for both economies and global markets. A successful resolution could potentially ease tensions and foster a more stable trading environment, while a failure to reach an agreement could exacerbate existing trade barriers and lead to further economic uncertainty.

As the talks continue, both sides are expected to work towards a comprehensive agreement that addresses the key issues at hand. The U.S. and China, as the world's two largest economies, have a significant impact on global trade and economic stability, making the resolution of their trade disputes a critical priority for investors and financial professionals alike.

Reference List:
[1] https://www.scmp.com/economy/china-economy/article/3313786/us-china-trade-showdown-where-do-talks-stand-after-day-1
[2] https://www.investopedia.com/trade-talks-between-u-s-and-china-start-today-here-s-what-to-know-11750703
[3] https://www.citizensvoice.com/2025/06/09/us-china-trade-talks/