LONDON – The United States and China are holding high-stakes trade talks in London on Monday, following a preliminary agreement reached last month in Geneva. The negotiations, aimed at preserving a fragile truce in an ongoing trade dispute, come as tensions remain high between the world’s two largest economies.
Leading the US delegation are Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, according to President Donald Trump. Chinese Vice Premier He Lifeng, who also led the Geneva talks, is heading the Chinese delegation.
Trump expressed optimism ahead of the meeting, posting on Truth Social that it “should go very well,” while his press secretary Karoline Leavitt reiterated the administration’s intent to see the Geneva deal implemented. British Prime Minister Keir Starmer’s government emphasized the UK is not involved in the content of the talks but welcomed the initiative, stating that “a trade war is in nobody’s interests.”
The talks follow the first publicly confirmed phone call between Trump and Chinese President Xi Jinping since Trump returned to office. Both sides described the call positively, with Xi calling for a “correct course” in Sino-US relations. However, unresolved issues remain, especially surrounding China’s export restrictions on rare earth minerals.
Tensions flared in April when Trump imposed sweeping global tariffs, prompting China to retaliate, with mutual tariffs reaching 145% and 125% respectively. Although the Geneva agreement temporarily reduced those tariffs for 90 days, May data shows Chinese exports to the US fell by nearly 13%. Meanwhile, Beijing is engaging other trade partners, including Canada, Japan, South Korea, and the EU, with proposals like a “green channel” for rare earths ahead of an upcoming EU-China summit in July.
