#USChinaTradeTalks
Market Alert: US-China Trade Talks Intensify - Key Updates for Traders ⚡️
## ⚡️ Market Alert: US-China Trade Talks Intensify - Key Updates for Traders ⚡️
**🔥 Day 1 Recap: Guarded Optimism in London**
Top US and Chinese officials held 6+ hours of talks on Monday, with US Treasury Secretary Scott Bessent calling it a "good meeting" and Commerce Secretary Howard Lutnick terming it "fruitful." Despite positive signals, President Trump acknowledged "China’s not easy," and China’s Vice Premier He Lifeng remained silent. Talks resume **TODAY (June 10)** focusing on **rare earth minerals** (critical for EVs/tech) and US **ethane export controls** .
### 💡 Critical Flashpoints:
| **Issue** | **US Action** | **China’s Move** | **Impact** |
|--------------------|------------------------------|--------------------------------|--------------------------------|
| **Rare Earths** | Protesting export curbs | Restricting exports | Tech/Auto supply chains at risk |
| **Energy** | Ethane export licenses | Buying 90% of US ethane | Plastics manufacturing squeeze |
| **Tariffs** | Steel/Aluminum duties ↑ 50% | Retaliatory measures expected? | Industrial input costs surge |
**📉 Market Reactions & Economic Data**
- **USD**: Dipped 0.2% as safe-haven demand eased; investors eye US May inflation data .
- **China’s May Exports**: Slumped to 3-month low; **-34.5% YoY drop** in US-bound shipments (steepest since Feb 2020) .
- **Yuan Stability**: Offshore yuan held at **7.18/USD** amid talks .
- **Deflation Deepens**: Factory-gate prices hit 2-year low – tariff pain intensifying .
### ⏳ What’s Next?
- **July Deadline**: Trump’s 90-day "reciprocal tariff" pause expires early July; US pushing allies for deals .
- **Legal Challenges**: Sweeping tariffs deemed "unlawful" by a US court but temporarily in effect .
- **Fed Watch**: Rate cut bets rise (47 bps priced for 2025) if tariffs fuel inflation .
