Trump tariffs live updates: US-China trade talks resume on Tuesday after signs of progress

Yahoo

a day ago

Trade talks between the US and China resumed on Tuesday after six hours of discussions between top officials kicked off in London on Monday. Tuesday's talks are expected to continue to focus on easing tensions over rare earths and tech.
After day one, US officials were upbeat but vague on progress. Treasury Secretary Scott Bessent said it was a "good meeting" while Commerce Secretary Howard Lutnick called the negotiations "fruitful." President Trump said on Monday he received "good reports" but added that "China's not easy." Vice Premier He Lifeng, who led China's delegation, did not comment on the meeting.
The negotiations follow Trump's call with Xi last week, which both leaders framed as positive. US-China tensions have risen in the aftermath of the countries' trade truce reached in mid-May in Geneva, with both countries accusing the other of breaching that truce while ratcheting up pressure on other issues.
The US and China are also now using their control over certain key materials to gain control in the trade war. Bloomberg reported on Friday that the US dominates in ethane, a gas used to make plastics, and China buys nearly all of it. Washington is now tightening control by requiring export licenses. China's curbs on exports of rare earth minerals, crucial for autos and more, have drawn Washington's ire.
Read more: What Trump's tariffs mean for the economy and your wallet
The US-China talks come as Trump pushes countries to speed up negotiations. The US sent a letter to partners as a "friendly reminder" that Trump's self-imposed 90-day pause on sweeping "reciprocal" tariffs is set to expire in early July.
White House advisers have for weeks promised trade deals in the "not-too-distant future," with the only announced agreement so far coming with the United Kingdom. US and Indian officials held trade talks this week and agreed to extend those discussions on Monday and Tuesday ahead of the July 9 deadline.
New tariffs are coming into play: Effective Wednesday, June 4, Trump doubled tariffs on steel and aluminum from 25% to 50%.
Meanwhile, Trump's most sweeping tariffs face legal uncertainty after a federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them "unlawful."
Here are the latest updates as the policy reverberates around the world.
Bloomberg reported that trade talks between the US and China will resume tomorrow morning at 10 a.m. in London after six hours of negotiations on Monday.
US officials were looking for a "handshake" on Monday, National Economic Council director Kevin Hassett told CNBC, as the two sides look to ease tensions over tech and rare earths.
President Trump weighed in on the progress, telling reporters on Monday: "We are doing well with China. China's not easy. ... I'm only getting good reports.'
Treasury Secretary Scott Bessent, meanwhile, said it was "good meeting" and Commerce Secretary Howard Lutnick called the talks "fruitful," sending an upbeat signal on the talks' progress.
The Chinese delegation, led by Vice Premier He Lifeng, did not comment on the talks.
From Bloomberg:
Read more here.
Reuters reports:
Maruti Suzuki has cut near-term production targets for its maiden electric vehicle e-Vitara by two-thirds because of rare earths shortages, a document showed, in the latest sign of disruption to the auto industry from China's export curbs.
India's top carmaker, which said on Monday it had not seen any impact yet from the supply crisis, now plans to make about 8,200 e-Vitaras between April and September, versus an original goal of 26,500, according to a company document seen by Reuters.
It cited "supply constraints" in rare earth materials that are vital in making magnets and other components across a range of hi-tech industries.
Read more here.
Both the US and China are finding new tools to use as bargaining chips within trade negotiations. Here's an example of just some of them:
Bloomberg News reports:
Read more here.
The de-escalation in trade tensions likely contributed to an improvement in US small-business confidence in May. However, uncertainty remained due to the overall economic outlook.
Reuters reports:
Read more here.
Chinese stocks fell on Tuesday ahead of the second day of trade negotiations between the US and China. Investors are cautious as the two biggest economies seek to resolve some contentious issues.
Bloomberg News reports:
Read more here.
As US-China trade negotiations resume in London on Tuesday, both sides are eager to rebuild the truce established in May. While, the US has tightened controls on AI chip exports, China may be holding the most valuable card in these talks.
CNN reports:
Read more here.
Advertising firm, WPP said on Tuesday that global advertising revenue is expected to grow 6% this year, lowering its earlier target of 7.7% due to the uncertainty surrounding US trade policies.
Reuters reports:
Read more here.
The number of ocean containers from China bound for the US fell precipitously in May when President Trump's 145% tariffs on Chinese goods were in effect.
Supply chain technology company Descartes said Monday that seaborne imports from China to the US dropped 28.5% year over year, the sharpest decline since the pandemic, per Reuters.
Overall, US seaborne imports fell 7.2% annually in May to 2.18 million 20-foot equivalent units. The decline snaps a streak of increases fueled by companies frontloading goods to avoid higher duties, which has kept US seaports, such as the Port of Long Beach, busy.
"The effects of U.S. policy shifts with China are now clearly visible in monthly trade flows," Descartes said in a statement.
Read more here.
In today's Chart of the Day, Yahoo Finance's Josh Schafer writes that tariff headlines have been rattling markets to a lesser degree than they did in April, despite an escalation of trade tensions recently:
Sign up for the Morning Brief newsletter to get the Chart of the Day in your inbox.
US import costs of steel and aluminum are expected to rise by more than $100 billion after President Trump doubled tariffs on the metals to 50% this week.
That is expected to impact automakers such as Ford (F), as well as importers for a variety of goods, from baseball bats to aircraft parts.
The Financial Times reports:
Read more here.
Tariffs have brought challenges for many, but Century Aluminum (CENX) and top recycler Matalco stand to benefit from President Trump's metal import duties as domestic prices rise.
Reuters reports:
Read more here.
The US is keen to strike a firm deal with China on rare earths exports as both sides resume talks in London today.
Reuters reports:
Read more here.
Global auto companies are hoping that trade talks between the US and China on Monday could help fast track rare earth exports from China, which are desperately needed.
Reuters reports:
Read more here.
Outbound shipments of rare earths in May from China rose 23% on the month to their highest in a year, despite Beijing's export curbs on some of the critical minerals prevented some overseas sales, with shortages impacting global manufacturing.
Bloomberg News reports:
Read more here.
Chinese exports rose less than expected last month, held back by the biggest drop in shipments to the US in over five years, despite strong demand from other markets.
Bloomberg News reports:
Read more here.
The US and China will restart trade talks in London on Monday after President Trump and Xi spoke last week.
The two sides have accused each other of breaking a May deal in Geneva to pause tariff hikes above 100%. Trump, after agreeing with Xi to resume critical mineral flows, said he expects the talks to go "very well."
'We want the rare earths, the magnets that are crucial for cell phones and everything else to flow just as they did before the beginning of April, and we don't want any technical details slowing that down,' Kevin Hassett, head of the National Economic Council at the White House, said Sunday on CBS's Face the Nation. 'And that's clear to them.'
US-China tensions rose this year after Trump raised tariffs on Chinese goods, triggering retaliation from Beijing. The Geneva deal was meant to ease tariff tensions, but talks stalled as both sides blamed each other.
The US criticized a drop in Chinese exports of rare earth magnets and China pushed back on US curbs targeting AI chips and student visas.
In London, US officials, which include Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick will meet with Vice Premier He Lifeng. According to a report in Bloomberg on Monday, Lutnick's presence suggests the US may review some tech restrictions.
The recent Trump-Xi call brought hope if lower tariffs, but investor confidence remains cautious. As of today, the US has only secured one new trade deal — with the UK.
A startup that assembles one of its smartphones entirely in the US says it's possible for a company like Apple to do the same and not incur prohibitive costs, but it's not easy and would take several years of focused effort, Fortune reports:
At least one expert in the UK believes Prime Minister Keir Starmer may have unrealistic expectations about a trade deal with President Donald Trump and the US, Bloomberg reports:
Read more here
President Donald Trump has come up short on striking trade deals with most nations with just one month left before his self-imposed tariff deadline, even as he took his first steps in weeks toward engaging with China.
Trump secured a much-desired call with Chinese President Xi Jinping, paving the way for a new round of talks on Monday in London — yet the diplomacy was overshadowed by a blowout public fight between Trump and his billionaire onetime ally, Elon Musk.
Trump's aides insisted Friday that the president was moving on and focused on his economic agenda. Still, question marks remain over the US's most consequential trade relationships, with few tangible signs of progress toward interim agreements.
Read more here
Bloomberg reports:
Read more here.
Bloomberg reported that trade talks between the US and China will resume tomorrow morning at 10 a.m. in London after six hours of negotiations on Monday.
US officials were looking for a "handshake" on Monday, National Economic Council director Kevin Hassett told CNBC, as the two sides look to ease tensions over tech and rare earths.
President Trump weighed in on the progress, telling reporters on Monday: "We are doing well with China. China's not easy. ... I'm only getting good reports.'
Treasury Secretary Scott Bessent, meanwhile, said it was "good meeting" and Commerce Secretary Howard Lutnick called the talks "fruitful," sending an upbeat signal on the talks' progress.
The Chinese delegation, led by Vice Premier He Lifeng, did not comment on the talks.
From Bloomberg:
Read more here.
Reuters reports:
Maruti Suzuki has cut near-term production targets for its maiden electric vehicle e-Vitara by two-thirds because of rare earths shortages, a document showed, in the latest sign of disruption to the auto industry from China's export curbs.
India's top carmaker, which said on Monday it had not seen any impact yet from the supply crisis, now plans to make about 8,200 e-Vitaras between April and September, versus an original goal of 26,500, according to a company document seen by Reuters.
It cited "supply constraints" in rare earth materials that are vital in making magnets and other components across a range of hi-tech industries.
Read more here.
Both the US and China are finding new tools to use as bargaining chips within trade negotiations. Here's an example of just some of them:
Bloomberg News reports:
Read more here.
The de-escalation in trade tensions likely contributed to an improvement in US small-business confidence in May. However, uncertainty remained due to the overall economic outlook.
Reuters reports:
Read more here.
Chinese stocks fell on Tuesday ahead of the second day of trade negotiations between the US and China. Investors are cautious as the two biggest economies seek to resolve some contentious issues.
Bloomberg News reports:
Read more here.
As US-China trade negotiations resume in London on Tuesday, both sides are eager to rebuild the truce established in May. While, the US has tightened controls on AI chip exports, China may be holding the most valuable card in these talks.
CNN reports:
Read more here.
Advertising firm, WPP said on Tuesday that global advertising revenue is expected to grow 6% this year, lowering its earlier target of 7.7% due to the uncertainty surrounding US trade policies.
Reuters reports:
Read more here.
The number of ocean containers from China bound for the US fell precipitously in May when President Trump's 145% tariffs on Chinese goods were in effect.
Supply chain technology company Descartes said Monday that seaborne imports from China to the US dropped 28.5% year over year, the sharpest decline since the pandemic, per Reuters.
Overall, US seaborne imports fell 7.2% annually in May to 2.18 million 20-foot equivalent units. The decline snaps a streak of increases fueled by companies frontloading goods to avoid higher duties, which has kept US seaports, such as the Port of Long Beach, busy.
"The effects of U.S. policy shifts with China are now clearly visible in monthly trade flows," Descartes said in a statement.
Read more here.
In today's Chart of the Day, Yahoo Finance's Josh Schafer writes that tariff headlines have been rattling markets to a lesser degree than they did in April, despite an escalation of trade tensions recently:
Sign up for the Morning Brief newsletter to get the Chart of the Day in your inbox.
US import costs of steel and aluminum are expected to rise by more than $100 billion after President Trump doubled tariffs on the metals to 50% this week.
That is expected to impact automakers such as Ford (F), as well as importers for a variety of goods, from baseball bats to aircraft parts.
The Financial Times reports:
Read more here.
Tariffs have brought challenges for many, but Century Aluminum (CENX) and top recycler Matalco stand to benefit from President Trump's metal import duties as domestic prices rise.
Reuters reports:
Read more here.
The US is keen to strike a firm deal with China on rare earths exports as both sides resume talks in London today.
Reuters reports:
Read more here.
Global auto companies are hoping that trade talks between the US and China on Monday could help fast track rare earth exports from China, which are desperately needed.
Reuters reports:
Read more here.
Outbound shipments of rare earths in May from China rose 23% on the month to their highest in a year, despite Beijing's export curbs on some of the critical minerals prevented some overseas sales, with shortages impacting global manufacturing.
Bloomberg News reports:
Read more here.
Chinese exports rose less than expected last month, held back by the biggest drop in shipments to the US in over five years, despite strong demand from other markets.
Bloomberg News reports:
Read more here.
The US and China will restart trade talks in London on Monday after President Trump and Xi spoke last week.
The two sides have accused each other of breaking a May deal in Geneva to pause tariff hikes above 100%. Trump, after agreeing with Xi to resume critical mineral flows, said he expects the talks to go "very well."
'We want the rare earths, the magnets that are crucial for cell phones and everything else to flow just as they did before the beginning of April, and we don't want any technical details slowing that down,' Kevin Hassett, head of the National Economic Council at the White House, said Sunday on CBS's Face the Nation. 'And that's clear to them.'
US-China tensions rose this year after Trump raised tariffs on Chinese goods, triggering retaliation from Beijing. The Geneva deal was meant to ease tariff tensions, but talks stalled as both sides blamed each other.
The US criticized a drop in Chinese exports of rare earth magnets and China pushed back on US curbs targeting AI chips and student visas.
In London, US officials, which include Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick will meet with Vice Premier He Lifeng. According to a report in Bloomberg on Monday, Lutnick's presence suggests the US may review some tech restrictions.
The recent Trump-Xi call brought hope if lower tariffs, but investor confidence remains cautious. As of today, the US has only secured one new trade deal — with the UK.
A startup that assembles one of its smartphones entirely in the US says it's possible for a company like Apple to do the same and not incur prohibitive costs, but it's not easy and would take several years of focused effort, Fortune reports:
At least one expert in the UK believes Prime Minister Keir Starmer may have unrealistic expectations about a trade deal with President Donald Trump and the US, Bloomberg reports:
Read more here
President Donald Trump has come up short on striking trade deals with most nations with just one month left before his self-imposed tariff deadline, even as he took his first steps in weeks toward engaging with China.
Trump secured a much-desired call with Chinese President Xi Jinping, paving the way for a new round of talks on Monday in London — yet the diplomacy was overshadowed by a blowout public fight between Trump and his billionaire onetime ally, Elon Musk.
Trump's aides insisted Friday that the president was moving on and focused on his economic agenda. Still, question marks remain over the US's most consequential trade relationships, with few tangible signs of progress toward interim agreements.
Read more here
Bloomberg reports:
Read more here.