US And China Resume Trade Talks In London After Trump's Call With Xi Jinping

Senior US and Chinese officials are set to meet in London on Monday for critical trade negotiations as both nations work to salvage their temporary tariff agreement amid accusations of violations from each side.

What Happened: US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer will represent Washington, while Chinese Vice Premier He Lifeng will lead Beijing’s delegation, reported BBC. The meeting follows a phone conversation between President Donald Trump and Chinese President Xi Jinping last week, which Trump described as reaching “a very positive conclusion for both countries.”

The London talks aim to address mounting friction since the 90-day truce agreed in Geneva in May. Bessent previously told Fox News that trade discussions had become “a bit stalled” and required direct input from Trump and Xi to break the deadlock.

Both sides have since accused each other of breaching the agreement, with Trump saying China had “totally violated its agreement” while Beijing claimed the US had “severely violated” the deal.

A key dispute centers on critical mineral exports. White House National Economic Council Director Kevin Hassett said rare earth exports “have been getting released at a rate that is higher than it was, but not as high as we believe we agreed to in Geneva.” China granted temporary rare-earth export licenses to suppliers of General Motors Co. GM, Ford Motor Co. F, and Stellantis NV STLA last week, with some licenses valid for six months.

Why It Matters: The current tariff structure maintains US levies at 30% on Chinese goods, down from peak rates of 145%, while China reduced its tariffs to 10%. China’s latest trade data showed exports rose 4.8% year-over-year in May, below analyst expectations, while imports fell 3.4%.

Trade experts emphasize the importance of direct leadership engagement. China analyst Jeremy Chan noted that Xi “has bowed to reality” that “there is no substitute for direct negotiations with Trump.” Fund manager Swetha Ramachandran called Lutnick’s inclusion in the delegation “a welcome addition” given his role in technology export controls to China.

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