USChinaTradeTalks US-China trade talks are ongoing, with US officials meeting with their Chinese counterparts in London to ease tensions over technology and rare earth elements shipments. The talks come amid a backdrop of a renewed US-China trade war, sparked by President Donald Trump's pledge to impose 60% tariffs on China.

*Key Developments:*

- *Tariff Reductions*: The US and China have agreed to reduce tariffs by 115% while retaining a 10% tariff on each other's goods.

- *Trade Deal*: The two countries have reached a deal to lower tariffs and eliminate retaliation, with China agreeing to remove retaliatory tariffs announced since April 4, 2025.

- *Rare Earth Exports*: China has continued restrictions on rare earth exports, stirring uncertainty in the market.

- *Next Steps*: The US and China will establish a mechanism to continue discussions on trade and economics, working towards addressing trade imbalances.¹ ²

*Market Impact:*

- *AUD/USD*: The Australian dollar has seen a slight increase, trading around 0.6517, amid hopes of de-escalation in US-China trade tensions.

- *Gold Price*: Gold prices have eased to $3,300 due to optimism over the resumption of US-China trade talks.

- *USD/JPY*: The US dollar has gained against the Japanese yen, rising to 145.00, amid renewed demand and BoJ Governor Ueda's comments.