Today, the US and China are engaged in pivotal trade talks in London, focusing on export controls rather than tariffs. A key issue on the table is rare earth exports, vital for electronics, electric vehicles, and military systems. China has imposed restrictions on rare earth supplies, disrupting US manufacturing, while the US has tightened export controls on sensitive technologies like semiconductors, jet engines, and AI chips.
Previously, both countries had agreed to reduce tariffs by 115% for 90 days in May to promote dialogue, but mutual accusations of violating the truce have strained relations. The US is pushing for China to resume rare earth shipments, while China demands the removal of US restrictions on critical technologies.
The potential outcome of these talks is significant: a deal could ease trade tensions, stabilize global markets, and foster cooperation. However, if no agreement is reached, the result may be higher tariffs and escalated trade hostility.
Leading the US delegation are Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, who are at the forefront of these crucial discussions.
