US and Chinese trade negotiators to meet in London
The US and China will hold talks in London on Monday in an attempt to preserve a fragile truce on trade.
US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are to lead the delegation from Washington.
Chinese Vice Premier He Lifeng, who led his country's negotiating team in Geneva in May, is also at the head of Beijing's team in London.
"The meeting should go very well," US President Donald Trump said in a post on his Truth Social platform.
White House press secretary Karoline Leavitt told Fox News on Sunday that "we want China and the United States to continue moving forward with the agreement that was struck in Geneva".
While the government of UK Prime Minister Keir Starmer has repeated it is not involved in the content of the discussions, a representative said: "We are a nation that champions free trade."
UK authorities "have always been clear that a trade war is in nobody's interests, so we welcome these talks", the representative added.
The talks in London come a matter of days after Mr Trump and Chinese President Xi Jinping held their first publicly announced phone call since the Republican returned to the White House. Mr Trump said the call, which took place on Thursday, reached a "very positive conclusion".
Mr Xi was quoted by state-run news agency Xinhua as saying that "correcting the course of the big ship of Sino-US relations requires us to steer well and set the direction".
The call came after tensions between the countries had soared, with Mr Trump accusing Beijing of breaching a tariff de-escalation deal reached in Geneva in May. "We need China to comply with their side of the deal. And so that's what the trade team will be discussing" in London, Ms Leavitt said.
In April, Mr Trump introduced sweeping worldwide tariffs that hit China hardest. At one point, the US imposed levies on China of 145 per cent, as both sides engaged in tit-for-tat escalation. China's countermeasures on US goods reached 125 per cent.
After two days of talks in Switzerland, the two sides agreed to reduce their tariffs for 90 days. But differences over certain issues have persisted, including China's restrictions on the export of rare earth minerals used in tech products.
The impact of the tariffs was reflected in the latest official export data released on Monday in Beijing. Exports to the US fell by 12.7 per cent in May, with China shipping $28.8 billion worth in goods. This was down from $33 billion in April, China's General Administration of Customs has said.
Throughout talks with the US, China has opened discussions with other trading partners, including Japan and South Korea, in an effort to build a united front to counter Mr Trump's tariffs.
On Thursday, Beijing turned to Canada, with the two sides agreeing to regularise channels of communication after a period of strained ties. China is expected to host a summit with the EU in July, marking 50 years since Beijing and Brussels established diplomatic ties.
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The National
17 minutes ago
- The National
US could soon lift international student visa restrictions
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Gulf Today
an hour ago
- Gulf Today
Oil prices climb to 2-month high on US, China trade agreement
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Wall Street stocks gained and the dollar and US Treasury yields dipped on Wednesday after President Donald Trump said a U.S.-China trade deal was done and a fresh report on US consumer prices in May showed only a marginal increase. A White House official said the agreement with China allows the US to charge a 55% tariff on imported Chinese goods, including a 10% baseline "reciprocal" tariff, a 20% tariff for fentanyl trafficking and a 25% tariff reflecting pre-existing tariffs. China would charge a 10% tariff on US imports, the official said. Trump also said that Beijing would supply magnets and rare earth minerals while the US will allow Chinese students in its colleges and universities. Separately, the Consumer Price Index (CPI) increased 0.1% in May amid cheaper gasoline after rising 0.2% in April, the US labour Department said on Wednesday, but inflation is expected to accelerate in the coming months on the back of the Trump administration's import tariffs. Chris Zaccarelli, chief investment officer for Northlight Asset Management in Charlotte, said the likely US China trade deal and consumer price data should support markets. "The narrative around tariff-induced inflation should subside," he wrote in an email. "We are still cautious, but many of the risks that were present in early April appear to be receding." The Dow Jones Industrial Average gained 0.4%, the S&P 500 advanced 0.3%, and the Nasdaq Composite rose 0.4%. Tesla shares added about 2% after Elon Musk also said he regretted some of the posts he made last week about Trump, opening the way to a healing of an abrupt rift that has roiled Washington and hurt shares in the electric carmaker. Asian shares were slightly more positive, with MSCI's broadest index of Asia-Pacific shares outside Japan up 0.65%, while the STOXX benchmark for major European shares were little changed. AUCTION ANGST: The reaction in currency markets was muted, with the dollar weakening slightly against the Japanese yen to trade at 144.83 . The euro edged up 0.46% to $1.147, nudging the dollar index down 0.24% to 98.72. Ten-year Treasury yields fell 3.4 basis points to 4.44%, but bond investors also waited for an auction of $39 billion in 10-year notes later in the day, anxious to see if foreign buyers turn up. Concerns about huge US budget deficits and debt have combined with unease over the White House's shifting policies to make investors demand a higher term premium for holding Treasuries. Following the consumer pricing data, traders of short-term interest-rate futures priced in a 70% chance of a quarter-point reduction in the Fed policy rate by September, compared with 57% earlier. Policymakers are widely expected to keep rates unchanged next week.. "Another month goes by with little evidence of tariffs, but the longer-term inflation challenge they pose remains," Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management, wrote in an email. "Given the Fed likely shares that outlook, no one should be looking for rate cuts in the near future." In commodity markets, gold gained 0.5% to $3,337 an ounce . Oil prices rose to a seven-week high as markets assessed the outcome of the U.S.-China trade talks. US crude rose 2% to $66.30 a barrel and Brent rose to $68.04 per barrel, up 1.75% on the day. Agencies
