FX.co ★ U.S.-China Trade Talks to Resume in London Today

Senior officials from the United States and China are poised to commence a new series of discussions in London today, indicating a potential de-escalation of trade tensions. The U.S. delegation will be led by Treasury Secretary Bessent, while Vice Premier He Lifeng will represent China. These talks come on the heels of a recent call between President Donald Trump and President Xi Jinping, described by Trump as a "very good talk." Last month, both countries agreed to a trade agreement, which reduces tariffs after an extended conflict; however, each side has accused the other of failing to honor commitments.

A significant topic of discussion will be China's export of rare earth materials, which President Trump claims President Xi has agreed to resume. Kevin Hassett, director of the National Economic Council, emphasized, "We want the rare earths, the magnets... to flow just as they did before April." China has recently approved some applications for rare earth exports, though the specifics remain undefined. The current tariff suspension is set to expire in July, with President Trump cautioning that tariffs could be reinstated at 145% if an agreement is not reached. Additionally, the talks may address U.S. restrictions on Huawei and the status of Chinese students studying in the United States.