US, China begin key trade talks in London amid tariff row
China and the United States began a new round of trade talks in London on Monday, Beijing's state media reported, as the world's two biggest economies seek to shore up a shaky truce after bruising tit-for-tat tariffs.
The two sides are meeting in the historic Lancaster House, run by the UK Foreign Office, following a first round of talks in Geneva last month.
Chinese Vice Premier He Lifeng was again heading the team in London. Chinese state news agency Xinhua reported the start of the talks.
Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are leading the US delegation, President Donald Trump said Friday.
"The meeting should go very well," Trump said on his Truth Social platform.
His press secretary, Karoline Leavitt, told Fox News on Sunday: "We want China and the United States to continue moving forward with the agreement that was struck in Geneva."
While the UK government reiterated that it was not involved in the discussions, a spokesperson 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 spokesperson added.
The talks in London come just a few days after Trump and Chinese President Xi Jinping finally held their first publicly announced telephone talks since the Republican returned to the White House.
Trump said Thursday's call reached a "very positive conclusion".
Xi was quoted by Xinhua as saying "correcting the course of the big ship of Sino-US relations requires us to steer well and set the direction".
Tensions between the two nations have soared, with Trump accusing Beijing of violating a tariff de-escalation deal reached in Geneva in mid-May.
"We need China to comply with their side of the deal. And so that's what the trade team will be discussing tomorrow," Leavitt said Sunday.
A key issue will be Beijing's shipments of rare earths -- crucial to a range of goods including electric vehicle batteries and which have been a bone of contention for some time.
"Rare earth shipments from China to the US have slowed since President Trump's 'Liberation Day' tariffs in April," said Kathleen Brooks, research director at trading group XTB.
"The US wants these shipments to be reinstated, while China wants the US to rethink immigration curbs on students, restrictions on access to advanced technology including microchips, and to make it easier for Chinese tech providers to access US consumers," she added.
In April, Trump introduced sweeping worldwide tariffs that targeted China most heavily.
At one point, Washington hit Beijing with additional levies of 145 percent on its goods, triggering a tit-for-tat escalation as China's countermeasures on US goods reached 125 percent.
In Switzerland, after two days of talks, the two sides agreed to slash their staggeringly high tariffs for 90 days.
But differences have persisted, including over China's restrictions on exporting rare earth minerals.
The impact was reflected in the latest official export data released Monday in Beijing.
Exports to the United States fell 12.7 percent in May from the previous month, with China shipping $28.8 billion worth of goods.
This was down from $33 billion in April, according to Beijing's General Administration of Customs.
Throughout its talks with Washington, China has also launched discussions with other trading partners -- including Japan and South Korea -- to try to build a united front to counter Trump's tariffs.
On Thursday, Beijing and Canada agreed to regularise their channels of communication after strained ties.
Canadian Prime Minister Mark Carney and Chinese Premier Li Qiang also discussed trade and the fentanyl crisis, Ottawa said.
Beijing has also proposed establishing a "green channel" to ease exports of rare earths to the European Union, and fast-tracking approval of some export licenses.
China is expected to host a summit with the EU in July, marking 50 years since Beijing and Brussels established diplomatic ties.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
43 minutes ago
- Time of India
Himachal Pradesh to open areas near India-China border for tourists
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Himachal Pradesh will open areas near India-China border , including strategically important Shipki La pass , for tourists.A beginning will be made on Tuesday with Shipki La, which is a high-altitude mountain pass that has been an old trade route between India and Tibet. It has an Army post and the border is manned by Indo-Tibetan Border Police (ITBP). So far, it was open for local residents and for limited trade between India and Tibet. Now, working with defence personnel and ITBP, Himachal Pradesh government has decided to ease restrictions and open up Shipki La Pass for tourists and adventure Indian resident will be able to visit this pass after furnishing an Aadhaar card. The Army will restrict the number of tourists per day. The initial plan is to allow 30 tourists per hour and 210 tourists a day. The tourists will be allowed to go till the border check post and come back. No photography of the strategic posts will be to ET, Himachal Pradesh chief minister Sukhvinder Singh Sukhu said, "We have been working with defence ministry for the last one and a half years to open up border areas for tourism in a restricted manner. We will first open Shipki La pass. Earlier, a permit was required for this area. This will be a big step for people of Kinnaur as we expect more tourist footfalls because of this."Tourists will be able to see the Chinese checkout and even roads within Chinese territory as at this spot the Indian checkout is at a higher level. Sukhu said, "This is just the first step. We will open more areas along India-China border." Himachal government is working towards opening Kaurik and Rangrik areas in Spiti La is in picturesque Kinnaur district at 4,000 m above sea level and is mostly snow covered and inaccessible during winter months. The state has now decided to use the summer months to open up the area for tourism.
Time of India
43 minutes ago
- Time of India
India looking for other magnet sources after China's curbs on rare earth metals
India is in talks with China on ensuring the supply of permanent magnets derived from rare earth minerals but is also working on 'alternate sources' for the critical components, commerce and industry minister Piyush Goyal said. He said the government is in constant touch with Indian industry to speed up the development of local sources. China, which controls 90% of the supply of rare earth magnets, has imposed curbs on supplies. These magnets are essential inputs in the manufacturing of cars, electric vehicles and renewable energy equipment, among others. 'There is a concern... our embassy is in dialogue with them (China)... commerce and industry ministry is also working,' Goyal said, adding that the government had already begun work on developing alternate sources. 'Hope Good Sense Prevails' Goyal was speaking to reporters after his interaction with local industry in Bern. "In a way, it's a wake-up call for all those who have become over-reliant on certain geographies. It's a wake-up call for the whole world that you need trusted partners in your supply chain,' the minister said. Auto industry and other industry bodies have represented the matter to the government seeking an early resolution of the problem. China had in April mandated special export licences for seven rare earth elements and related magnets. It is seeking an undertaking that permanent magnets it supplies will not be re-exported to the US, nor will they find applications in the defence industry. ET reported on June 4 that nine auto component manufacturers have received endorsement from the Chinese embassy in India for importing critical rare earth magnets, but supply has not resumed as the neighbouring country's commerce ministry has not given its nod. "Obviously, there are issues around the stopping of permanent magnets from China to India, which will affect our auto sector, particularly, and several white goods and other sectors. Some companies have put in their applications, and we hope that good sense prevails and they get their approvals for permanent magnets," the minister said. The Centre is also looking to Indian Rare Earths Ltd to speed up the development of domestic resources, Goyal said. Asked if the government will consider a production-linked incentive scheme for these magnets, Goyal said he had discussed the matter with the auto industry and was confident of resolving the matter. "They are in dialogue with our innovators, startups and they say they will take care of any funding requirement or pricing correction that may need to encourage faster rollout and growth of this sector," Goyal said. On alternative sources, the minister said these could also be some technologies that India is developing. "The government, the industry and startups and innovators are all working as a team and we are confident that there may be a problem in the short run but we will emerge winners in the mid to long runs," he said. (The reporter is in Bern at the invitation of the ministry of commerce & industry)
Hindustan Times
an hour ago
- Hindustan Times
Can Donald Trump call for Gov Newsom's arrest over LA riots? Here's what the law says
President Donald Trump on Monday suggested his border czar Tom Homan should arrest Gov Gavin Newsom amid riots in Los Angeles. 'I would do it … I think it would be a great thing,' Trump responded when asked if Homan should arrest the governor, who has challenged the administration's mobilization of National Guard in LA. Newsom, too, was quick to slam Trump. "The President of the United States just called for the arrest of a sitting Governor. This is a day I hoped I would never see in America," he said on X, platform formerly known as Twitter. Read More: Los Angeles protests: 'Incendiary devices' hurled at police horses, says LAPD No, Trump cannot unilaterally arrest Gov Newsom over riots in Los Angeles. The US Constitution and legal system have clear checks and balances that prevent a former president—or even a sitting president—from directly arresting state officials without due process. Separation of Powers (Article II & III of the Constitution) The president does not have the judicial authority to issue warrants. Only law enforcement, backed by court orders, can detain someone. Any attempt to arrest Newsom without due process would violate the Fifth and Fourteenth Amendments, which guarantee fair legal procedures. State Sovereignty – Tenth Amendment Under the US system of federalism, states like California retain control over their own officials and law enforcement. The president cannot interfere in state governance unless federal law is violated and due process is followed. Read More: After tear gas and street fires, an Los Angeles community cleans up as National Guard troops arrive Military Limitations – The Posse Comitatus Act (18 US Code § 1385) This law forbids the use of the US military to carry out domestic law enforcement activities without explicit congressional authorization. Even in times of civil unrest, the president cannot use the military to detain or arrest state leaders like Newsom. No Legal Authority Post-Presidency As a former president, Trump has no legal powers—executive, military, or judicial. He cannot issue federal commands or make arrests.
