#USChinaTradeTalks As of Monday, June 9, 2025, high-level trade talks between the United States and China are underway in London, aiming to ease tensions that have escalated over recent months. The U.S. delegation is led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. China’s team is headed by Vice Premier He Lifeng .

Key Developments

Tariff Reductions: Following a 90-day truce initiated in Geneva, both nations agreed to reduce tariffs—U.S. tariffs on Chinese goods were lowered from 145% to 30%, and China's tariffs on U.S. goods were reduced from 125% to 10% .

Export Controls: The talks are addressing critical issues such as export controls, particularly China's suspension of rare-earth exports in April, which impacted global supply chains in sectors like automotive, aerospace, and defense .

Economic Concerns: China is experiencing deflationary pressures, with inflation at -0.1% and factory gate prices falling by 3.3%, signaling economic challenges that may influence the negotiations .

Market Reactions

U.S. Markets: Stock futures dipped slightly ahead of the talks, with the Dow Jones futures falling around 60 points (0.1%), while S&P 500 and Nasdaq-100 futures declined roughly 0.2% .

Asian Markets: Asian stocks surged on Monday, with Hong Kong's Hang Seng index jumping 1.4%, reflecting investor optimism surrounding the trade discussions and stronger-than-expected U.S. employment data .

Outlook

While the London talks are a positive step, significant challenges remain, including unresolved issues related to Taiwan, fentanyl trafficking, and systemic economic differences . The outcome of these negotiations will be crucial in determining the future trajectory of U.S.-China trade relations and their impact on the global economy.