U.S. Commerce Secretary Lutnick: Talks with China are going well

U.S. Commerce Secretary Lutnick: Talks with China are going well

U.S. Commerce Secretary Howard Lutnick has expressed optimism about the ongoing trade negotiations between the United States and China, stating that the talks are "fruitful" [1]. The discussions, which began on Monday in London, are expected to continue on Tuesday, with a focus on easing tensions over rare earths and technology [1].

The meeting follows a lengthy phone call between U.S. President Donald Trump and Chinese President Xi Jinping last week, which both leaders framed as positive [1]. The negotiations come after the countries' trade truce reached in mid-May in Geneva, where both sides agreed to temporarily slash tariffs and facilitate talks [1]. However, tensions have risen in the aftermath of this agreement, with both countries accusing each other of breaching the truce and ratcheting up pressure on other issues [1].

The talks are particularly focused on the export of rare earth minerals, crucial for autos and more, which have drawn Washington's ire due to China's curbs on exports [1]. The U.S. has also been tightening control over key materials like ethane, a gas used to make plastics, by requiring export licenses [1].

In addition to the London talks, the U.S. has been pushing countries to speed up negotiations, sending a letter to partners as a "friendly reminder" that Trump's self-imposed 90-day pause on sweeping "reciprocal" tariffs is set to expire in early July [1]. The U.S. and China are also using their control over these materials to gain leverage in the trade war.

Despite the ongoing disputes, U.S. officials have expressed confidence in the talks, with Treasury Secretary Scott Bessent describing the first day of negotiations as a "good meeting" [1]. The White House has for weeks promised trade deals in the "not-too-distant future," with the only announced agreement so far coming with the United Kingdom [1].

The London talks are expected to focus on moving forward with the Geneva agreement and addressing the strategic interests of both countries in each other's markets [2]. However, some experts have warned that the talks may not resolve the underlying tensions between the two economic giants [3].

The negotiations come as the U.S. faces legal uncertainty over its most sweeping tariffs, with a federal appeals court allowing the tariffs to temporarily stay in effect after the U.S. Court of International Trade deemed the method used to enact them "unlawful" [1].

References:
[1] https://finance.yahoo.com/news/live/trump-tariffs-live-updates-us-china-trade-talks-to-continue-on-tuesday-after-signs-of-progress-200619217.html
[2] https://www.cnbc.com/2025/06/09/china-and-us-trade-officials-to-hold-talks-in-london-.html
[3] https://www.foxbusiness.com/fox-news-world/us-china-meet-london-round-2-high-level-trade-talks