Trump and Bessent Offer First Comments as US-China Trade Talks Resume in London
Trade negotiations between the United States and China resumed Tuesday in London, following six hours of closed-door discussions on Monday.
The talks mark a renewed attempt to stabilize deteriorating economic ties, with a sharp focus on rare earth mineral exports and advanced technology trade restrictions.
Positive Signals, Vague Outcomes
According to information from Bloomberg Trump told reporters he received “good reports” from his team but noted that “China’s not easy,” while Bessent described the talks as a “good meeting.” Commerce Secretary Howard Lutnick added that the discussions were “fruitful,” suggesting some positive momentum despite the lack of clear outcomes. The Chinese delegation, led by Vice Premier He Lifeng, did not comment publicly.
The Chinese delegation, led by Vice Premier He Lifeng, has yet to comment publicly on the talks.
The latest round of negotiations follows a phone call between President Trump and President Xi Jinping last week, which both leaders described as productive. Tensions have escalated since the mid-May trade truce in Geneva, with both sides accusing each other of violating the agreement.
Trade Leverage: Rare Earths vs. Technology
The U.S. and China are now engaged in a high-stakes standoff over critical materials and export controls, using their respective dominance in key supply chains as leverage.
Bloomberg reports that Washington is prepared to ease recent export curbs on items such as chip design software, jet engine parts, chemicals, and nuclear materials, in exchange for assurances that China will loosen its restrictions on rare earth mineral exports. Rare earths are crucial for manufacturing smartphones, military aircraft, and energy infrastructure, and China controls nearly 70% of global supply.
Meanwhile, the U.S. is tightening its grip on ethane exports, a gas essential to plastics production, of which China is a major buyer. New rules now require export licenses, further straining trade ties.
Countdown to July Tariff Deadline
The talks are taking place against the backdrop of Trump’s self-imposed 90-day pause on new reciprocal tariffs, which is set to expire in early July. The White House has been pressuring allies to finalize trade deals before the deadline. So far, only the United Kingdom has signed an agreement, while negotiations with India are ongoing.
Adding to the urgency, new tariffs on steel and aluminum—doubling rates from 25% to 50%—took effect on June 4. Meanwhile, the legality of broader tariffs remains contested in U.S. courts, with a federal appeals court temporarily upholding the measures after a lower court deemed them unlawful.
What’s Next
Talks between U.S. and Chinese officials are set to continue Tuesday morning in London at 10 a.m. local time. A potential deal may hinge on reciprocal compromises in tech and rare earth policy. President Trump has yet to confirm whether restrictions will be lifted, saying only, “we’ll see.”
The SEC decision deadline for related U.S. trade policy shifts is expected in early November, setting the stage for further negotiations and political maneuvering throughout the summer.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
