#USChinaTradeTalks US-China trade talks are ongoing, with the latest round of negotiations taking place in London. The talks aim to resolve the high-stakes trade dispute between the two superpowers, which has escalated beyond tariffs to export controls on critical goods and components.
*Key Developments:*
- *Tariff Reductions*: Both countries agreed to reduce tariffs by 115% while retaining a 10% tariff, with China removing retaliatory tariffs and the US suspending its 34% reciprocal tariff for 90 days.
- *Trade Deficit*: The US goods trade deficit with China was $295.4 billion in 2024, and the talks aim to address these imbalances.
- *Rare Earths Shipments*: China agreed to resume shipments of rare earths minerals and magnets to the US, which is crucial for industries like automotive, aerospace, and semiconductors ¹ ².
*Upcoming Talks:*
- *London Meeting*: US and Chinese delegations, led by Treasury Secretary Scott Bessent and Vice Premier He Lifeng, respectively, will discuss trade and economics.
- *Agenda*: The talks will focus on defusing the trade dispute, export controls, and critical goods and components ².
*Implications:*
- *Global Economy*: The trade dispute has roiled the global economy, and a resolution could bring relief to investors and markets.
- *Supply Chains*: The talks aim to stabilize supply chains, particularly for critical minerals and components ².