Today, June 9, 2025, negotiations began in London between U.S. trade officials and China, which will last several days. These discussions aim to resolve trade disputes and extend the truce on tariffs reached in May. President Donald Trump expressed optimism, calling the negotiations promising and noting that they 'should go very well.' This followed a recent positive phone call with Chinese President Xi Jinping, where key issues were discussed, including the export of rare earth minerals.
The negotiations, led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, are taking place at a critical moment. After months of tension caused by Trump’s tariffs and corresponding measures from China, the Geneva truce reduced tariffs to 30% and 10% respectively. However, disputes over compliance with agreements and export restrictions remain. The Trump administration is eager to resolve these issues, while China emphasizes mutual respect.
Markets are cautiously hopeful for de-escalation, reflected in the recent rise in U.S. stocks. However, issues such as the supply of fentanyl precursors and China's influence through minerals remain unresolved. The outcome of these negotiations could determine economic stability, especially with the truce deadline approaching in 90 days.