#USChinaTradeTalks

**U.S.-China Trade Talks: Key Developments and Implications**

The latest round of U.S.-China trade talks began on June 9, 2025, in London, aiming to de-escalate tensions between the world’s two largest economies. The discussions focus on critical issues like tariffs, rare earth minerals, and technology transfers, with both sides seeking to avoid a full-scale trade war resurgence .

### **Key Points of Negotiation**

1. **Rare Earth Minerals**: China’s restrictions on rare earth exports, imposed in April, have disrupted U.S. industries, particularly auto manufacturing. The U.S. is pushing for China to lift these curbs, as these minerals are vital for electric vehicles, electronics, and defense systems .

2. **Tariffs**: Temporary suspensions of some tariffs (e.g., a 24% reduction for 90 days) are in place, but average tariffs remain high—51% on Chinese goods by the U.S. and 32.6% on U.S. goods by China. Without a permanent deal, these levies could rebound by August .

3. **Economic Pressures**: China faces deflation and a 34.5% drop in exports to the U.S. in May, while the U.S. grapples with supply chain vulnerabilities. This imbalance gives each side unique leverage—China controls critical exports, while the U.S. holds macroeconomic stability .

### **Broader Implications**

Failure to reach an agreement could lead to shortages and price hikes for U.S. consumers, while China risks further economic slowdown. However, signals of flexibility, such as potential U.S. easing of jet engine export controls, suggest room for compromise .

The talks, set to continue this week, will shape global trade dynamics and economic stability in 2025. Investors and policymakers await outcomes that could redefine bilateral relations .