#USChinaTradeTalks 🇺🇸🇨🇳 US–China Trade Talks Resume in London

1. Background & Stakes

Post-Geneva Truce (May 2025): A 90-day cooling-off period saw U.S. tariffs cut from 145% to 30%, and China’s from 125% to 10%.

New Flashpoints: Tensions are back, driven by disputes over semiconductors, rare-earth minerals, and student visa restrictions.

2. Negotiators

United States:

Treasury Secretary Scott Bessent

Commerce Secretary Howard Lutnick

U.S. Trade Representative Jamieson Greer

China:

Vice Premier He Lifeng

Objective: Go beyond temporary tariff relief and tackle structural issues—especially in technology and strategic resources.

3. Core Issues at Stake

Rare Earths & Export Controls:

China halts exports, citing national security.

U.S. dependent on these for EVs, aerospace, defense—seeks supply chain security.

Technology & Semiconductors:

U.S. export controls on AI, chips, and Huawei have sparked strong backlash.

Talks aim to de-escalate tech warfare or create management frameworks.

Broader Geopolitical Tensions:

Taiwan, fentanyl trafficking, and visa clampdowns hover over the talks, adding complexity.

4. Market Response

U.S. Markets: Flat to slightly down (S&P 500, Dow, Nasdaq futures)

Asia:

Kospi: +1.9%

Nikkei: +1.1%

Oil: Brent stable around $66/barrel, on cautious optimism of reduced trade tensions.