#USChinaTradeTalks a comprehensive summary as high-stakes talks unfold in London:
---
đ 1. Background & Stakes
Tariff Truce in May: In Geneva, both nations agreed to reduce tariffs â the U.S. from 145% to 30% and China from 125% to 10%, in a temporary 90-day pause .
Escalation Pre-Geneva: Earlier this year, the U.S. had slapped 145% tariffs on Chinese imports, while China retaliated with tariffs up to 125% .
Output Shock: Chinaâs exports to the U.S. plummeted ~34â35% in May YoY â the steepest drop since early 2020 â pounding both economies .
---
đď¸ 2. London Talks (June 9, 2025)
Delegations Present:
U.S.: Secretary of Treasury Scott Bessent, Commerce Secretary Howard Lutnick, Trade Rep Jamieson Greer .
China: Vice Premier HeâŻLifeng leads the delegation .
Agenda Focus:
1. Ensuring China resumes rare-earth exports to U.S. industries.
2. Securing U.S. assurances on easing export controls, especially tech and semiconductors .
Market Reaction:
Asian equity markets (Hang Seng, Shanghai) rose ~0.4â1.6% on the optimism .
U.S. indices were steadyâS&P flat, Dow slightly down, Nasdaq modestly up .
---
đ 3. Signs of a Thaw
Boeing Delivery Resumes: A new 737 MAX was flown to China â first since tariff surge â highlighting easing business ties .
Rare-Earth Shipments Partially Restarted: China issued some rare-earth export licenses; U.S. reportedly signaled readiness to ease tech curbs .
---
â ď¸ 4. Lingering Complexities
Mistrust & Divergent Goals: China stresses multilateralism and stable trade, while the U.S. pushes bilateral leverage via export controls and tariffs .
Trade Talks May Be Modest: Analysts caution that without major structural shiftsâlike fair-market access or supply-chain reformsâoutcomes may be shallow .
Political Headwinds: U.S. lawmakers challenge Trumpâs tariff authority, and Trump's own comments suggest China "violated" the Geneva accord .
đ 5. Key Takeaways
đ Takeaway What It Means
Temporary De-escalation Talks aim to maintain the Geneva truce and build confidence,