Latest news with #GeoEconomicsCenter
Yahoo
3 days ago
- Business
- Yahoo
US and China ‘back to square one' after two days of trade talks
Talks between the US and China are 'back to square one' after two days of trade negotiations in London failed to secure a major deal. Howard Lutnick, Donald Trump's commerce secretary, said the two sides had agreed on a 'framework' to put their trading relations back on track and repair the truce initially agreed in Geneva last month. There was little market reaction to the announcement at Lancaster House shortly after midnight, with the dollar strengthening a little and stock markets opening marginally higher. The two sides have until Aug 10 to negotiate a more comprehensive agreement to ease trade tensions, or US tariffs on China will snap back from about 30pc to 145pc, with China's levies on America increasing from 10pc to 125pc. Josh Lipsky, of the Atlantic Council's GeoEconomics Center in Washington, said: 'They are back to square one but that's much better than square zero.' Jim Reid, a Deutsche Bank analyst, added: 'While the mood music has stayed positive, investors may be wary of the pattern that emerged during the previous US-China trade talks in 2018-19, when apparently constructive in-person meetings seemed to take a step back as the negotiating teams returned to their capitals. 'So there's perhaps a little disappointment this morning that we haven't yet got a bigger announcement, even though there's time to hear the full conclusions of the meeting.' Senior officials from Washington and Beijing had gathered in London after accusations from both sides that they had violated the terms of the deal made in Switzerland. Mr Trump and Xi Jinping held a call last week that Mr Lutnick said 'gave the fundamental foundation on which we were able to reach agreement'. Mr Lutnick said: 'We have reached a framework to implement the Geneva consensus and the call between the two presidents. 'The idea is we're going to go back and speak to President Trump and make sure he approves it. 'They're going to go back and speak to President Xi and make sure he approves it, and if that is approved, we will then implement the framework.' In a separate briefing, Li Chenggang, China's vice commerce minister, said a trade framework had been reached in principle that would be taken back to US and Chinese leaders. Mr Lutnick said China's restrictions on exports of rare earth minerals and magnets to the US would be resolved as a 'fundamental' part of the framework agreement. He also said the agreement would remove some of the recent US export restrictions, but did not provide details. Kathleen Brooks, the research director at XTB, a trading platform, said: 'Overall, the US-China trade agreement is taking its time, and it could test the market's patience.' Meanwhile, the European Union reportedly believes it could extend its trade negotiations with the US beyond the initial deadline next month. The EU thinks there could be scope for further talks if it agrees a deal in principle by July 9, which is considered its best-case scenario, according to Bloomberg. The Trump administration is scheduled to enforce 50pc tariffs on EU goods beyond that date unless a deal is reached. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
3 days ago
- Business
- Yahoo
US and China ‘back to square one' after two days of trade talks
Talks between the US and China are 'back to square one' after two days of trade negotiations in London failed to secure a major deal. US commerce secretary Howard Lutnick said the two sides had agreed on a 'framework' to put their trading relations back on track and repair the truce initially agreed in Geneva last month. There was little market reaction to the announcement at Lancaster House shortly after midnight, with the dollar strengthening a little and stock markets opening marginally higher. The two sides have until August 10 to negotiate a more comprehensive agreement to ease trade tensions, or US tariffs on China will snap back from about 30pc to 145pc, with China's levies on America increasing from 10pc to 125pc. Josh Lipsky, of the Atlantic Council's GeoEconomics Center in Washington, said: 'They are back to square one but that's much better than square zero.' Deutsche Bank analyst Jim Reid added: 'While the mood music has stayed positive, investors may be wary of the pattern that emerged during the previous US-China trade talks in 2018-19, when apparently constructive in-person meetings seemed to take a step back as the negotiating teams returned to their capitals. 'So there's perhaps a little disappointment this morning that we haven't yet got a bigger announcement, even though there's time to hear the full conclusions of the meeting.' Top officials from Washington and Beijing had gathered in London after accusations from both sides that they had violated the terms of the deal made in Switzerland. Donald Trump and Xi Jinping held a call last week which Mr Lutnick said 'gave the fundamental foundation on which we were able to reach agreement'. Mr Lutnick said: 'We have reached a framework to implement the Geneva consensus and the call between the two presidents. 'The idea is we're going to go back and speak to President Trump and make sure he approves it. 'They're going to go back and speak to President Xi and make sure he approves it, and if that is approved, we will then implement the framework.' In a separate briefing, China's vice commerce minister Li Chenggang also said a trade framework had been reached in principle that would be taken back to US and Chinese leaders. Mr Lutnick said China's restrictions on exports of rare earth minerals and magnets to the US would be resolved as a 'fundamental' part of the framework agreement. He also said the agreement would remove some of the recent US export restrictions, but did not provide details. Kathleen Brooks, research director at XTB, said: 'Overall, the US-China trade agreement is taking its time, and it could test the market's patience.' Meanwhile, the European Union reportedly believes it could extend its trade negotiations with the US beyond the initial deadline next month. The EU thinks there could be scope for further talks if it agrees a deal in principle by July 9, which is considered its best-case scenario, according to Bloomberg. The Trump administration is scheduled to enforce 50pc tariffs on EU goods beyond that date unless a deal is reached. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Express Tribune
3 days ago
- Business
- Express Tribune
US-China reach trade agreement to ease rare earth export curbs
Chinese Vice Premier He Lifeng leaves Lancaster House, on the second day scheduled for trade talks between the U.S. and China, in London, Britain, June 10, 2025. Photo:REUTERS Listen to article US and Chinese officials said on Tuesday they had agreed on a framework to put their trade truce back on track and remove China's export restrictions on rare earths while offering little sign of a durable resolution to longstanding trade differences. At the end of two days of intense negotiations in London, US Commerce Secretary Howard Lutnick told reporters the framework deal puts "meat on the bones" of an agreement reached last month in Geneva to ease bilateral retaliatory tariffs that had reached crushing triple-digit levels. But the Geneva deal had faltered over China's continued curbs on critical minerals exports, prompting the Trump administration to respond with export controls of its own preventing shipments of semiconductor design software, aircraft and other goods to China. I will be disappointed if it's true 'Rare Earth Export Curbs Lifted'. Global security from expanded wars of the waning US hegemon depends on those curbs. — Kathleen Tyson (@Kathleen_Tyson_) June 11, 2025 Lutnick said the agreement reached in London would remove some of the recent US export restrictions, but did not provide details after the talks concluded around midnight London time (2300 GMT). "We have reached a framework to implement the Geneva consensus and the call between the two presidents," Lutnick said. "The idea is we're going to go back and speak to President Trump and make sure he approves it. They're going to go back and speak to President Xi and make sure he approves it, and if that is approved, we will then implement the framework." In a separate briefing, China's Vice Commerce Minister Li Chenggang also said a trade framework had been reached in principle that would be taken back to US and Chinese leaders. The dispute may keep the Geneva agreement from unravelling over duelling export controls, but does little to resolve deep differences over Trump's unilateral tariffs and longstanding US complaints about China's state-led, export-driven economic model. The two sides left Geneva with fundamentally different views of the terms of that agreement and needed to be more specific on required actions, said Josh Lipsky, senior director of the Atlantic Council's GeoEconomics Center in Washington. "They are back to square one but that's much better than square zero," Lipsky added. The two sides have until August 10 to negotiate a more comprehensive agreement to ease trade tensions, or tariff rates will snap back from about 30% to 145% on the US side and from 10% to 125% on the Chinese side. Investors, who have been badly burned by trade turmoil before, offered a cautious response and MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.57%. "The devil will be in the details, but the lack of reaction suggests this outcome was fully expected," said Chris Weston, head of research at Pepperstone in Melbourne. "The details matter, especially around the degree of rare earths bound for the US, and the subsequent freedom for US-produced chips to head east, but for now as long as the headlines of talks between the two parties remain constructive, risk assets should remain supported." Lutnick said China's restrictions on exports of rare earth minerals and magnets to the U.S. will be resolved as a "fundamental" part of the framework agreement. "Also, there were a number of measures the United States of America put on when those rare earths were not coming," Lutnick said. "You should expect those to come off ... in a balanced way." I will be disappointed if it's true 'Rare Earth Export Curbs Lifted'. Global security from expanded wars of the waning US hegemon depends on those curbs. — Kathleen Tyson (@Kathleen_Tyson_) June 11, 2025 US President Donald Trump's shifting tariff policies have roiled global markets, sparked congestion and confusion in major ports, and cost companies tens of billions of dollars in lost sales and higher costs. The World Bank on Tuesday slashed its global growth forecast for 2025 by four-tenths of a percentage point to 2.3%, saying higher tariffs and heightened uncertainty posed a "significant headwind" for nearly all economies. A resolution to the trade war may require policy adjustments from all countries to treat financial imbalances or otherwise greatly risk mutual economic damage, European Central Bank President Christine Lagarde said on a rare visit to Beijing on Wednesday. Phone call helped The second round of US-China talks was given a major boost by a rare phone call between Trump and Chinese President Xi Jinping last week, which Lutnick said provided directives that were merged with Geneva truce agreement. Customs data published on Monday showed that China's exports to the US plunged 34.5% in May, the sharpest drop since the outbreak of the COVID pandemic. While the impact on US inflation and its jobs market has so far been muted, tariffs have hammered US business and household confidence and the dollar remains under pressure. Lutnick was joined by US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent at the London talks. Bessent departed hours before their conclusion to return to Washington to testify before Congress on Wednesday. China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors, and its decision in April to suspend exports of a wide range of critical minerals and magnets upended global supply chains. In May, the US responded by halting shipments of semiconductor design software and chemicals and aviation equipment, revoking export licences that had been previously issued. China, Mexico, the European Union, Japan, Canada and many airlines and aerospace companies worldwide urged the Trump administration not to impose new national security tariffs on imported commercial planes and parts, according to documents released Tuesday. Just after the framework deal was announced, a US appeals court allowed Trump's most sweeping tariffs to stay in effect while it reviews a lower court decision blocking them on grounds that they exceeded Trump's legal authority by imposing them.
Yahoo
3 days ago
- Business
- Yahoo
US and China ‘back to square one' after two days of trade talks
Talks between the US and China are 'back to square one' after two days of trade negotiations in London failed to secure a major deal. US commerce secretary Howard Lutnick said the two sides had agreed on a 'framework' to put their trading relations back on track and repair the truce initially agreed in Geneva last month. There was little market reaction to the announcement at Lancaster House shortly after midnight, with the dollar strengthening a little and stock markets opening marginally higher. The two sides have until August 10 to negotiate a more comprehensive agreement to ease trade tensions, or US tariffs on China will snap back from about 30pc to 145pc, with China's levies on America increasing from 10pc to 125pc. Josh Lipsky, of the Atlantic Council's GeoEconomics Center in Washington, said: 'They are back to square one but that's much better than square zero.' Deutsche Bank analyst Jim Reid added: 'While the mood music has stayed positive, investors may be wary of the pattern that emerged during the previous US-China trade talks in 2018-19, when apparently constructive in-person meetings seemed to take a step back as the negotiating teams returned to their capitals. 'So there's perhaps a little disappointment this morning that we haven't yet got a bigger announcement, even though there's time to hear the full conclusions of the meeting.' Top officials from Washington and Beijing had gathered in London after accusations from both sides that they had violated the terms of the deal made in Switzerland. Donald Trump and Xi Jinping held a call last week which Mr Lutnick said 'gave the fundamental foundation on which we were able to reach agreement'. Mr Lutnick said: 'We have reached a framework to implement the Geneva consensus and the call between the two presidents. 'The idea is we're going to go back and speak to President Trump and make sure he approves it. 'They're going to go back and speak to President Xi and make sure he approves it, and if that is approved, we will then implement the framework.' In a separate briefing, China's vice commerce minister Li Chenggang also said a trade framework had been reached in principle that would be taken back to US and Chinese leaders. Mr Lutnick said China's restrictions on exports of rare earth minerals and magnets to the US would be resolved as a 'fundamental' part of the framework agreement. He also said the agreement would remove some of the recent US export restrictions, but did not provide details. Kathleen Brooks, research director at XTB, said: 'Overall, the US-China trade agreement is taking its time, and it could test the market's patience.' Meanwhile, the European Union reportedly believes it could extend its trade negotiations with the US beyond the initial deadline next month. The EU thinks there could be scope for further talks if it agrees a deal in principle by July 9, which is considered its best-case scenario, according to Bloomberg. The Trump administration is scheduled to enforce 50pc tariffs on EU goods beyond that date unless a deal is reached. Sign in to access your portfolio
Business Recorder
3 days ago
- Business
- Business Recorder
US, China reach deal to ease export curbs, keep tariff truce alive
LONDON: US and Chinese officials said on Tuesday they had agreed on a framework to put their trade truce back on track and remove China's export restrictions on rare earths while offering little sign of a durable resolution to longstanding trade differences. At the end of two days of intense negotiations in London, U.S. Commerce Secretary Howard Lutnick told reporters the framework deal puts 'meat on the bones' of an agreement reached last month in Geneva to ease bilateral retaliatory tariffs that had reached crushing triple-digit levels. But the Geneva deal had faltered over China's continued curbs on critical minerals exports, prompting the Trump administration to respond with export controls of its own preventing shipments of semiconductor design software, aircraft and other goods to China. Lutnick said the agreement reached in London would remove some of the recent U.S. export restrictions, but did not provide details after the talks concluded around midnight London time (2300 GMT). 'We have reached a framework to implement the Geneva consensus and the call between the two presidents,' Lutnick said. 'The idea is we're going to go back and speak to President Trump and make sure he approves it. They're going to go back and speak to President Xi and make sure he approves it, and if that is approved, we will then implement the framework.' In a separate briefing, China's Vice Commerce Minister Li Chenggang also said a trade framework had been reached in principle that would be taken back to U.S. and Chinese leaders. The dispute may keep the Geneva agreement from unravelling over duelling export controls, but does little to resolve deep differences over Trump's unilateral tariffs and longstanding U.S. complaints about China's state-led, export-driven economic model. The two sides left Geneva with fundamentally different views of the terms of that agreement and needed to be more specific on required actions, said Josh Lipsky, senior director of the Atlantic Council's GeoEconomics Center in Washington. 'They are back to square one but that's much better than square zero,' Lipsky added. The two sides have until August 10 to negotiate a more comprehensive agreement to ease trade tensions, or tariff rates will snap back from about 30% to 145% on the U.S. side and from 10% to 125% on the Chinese side. Investors, who have been badly burned by trade turmoil before, offered a cautious response and MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.57%. 'The devil will be in the details, but the lack of reaction suggests this outcome was fully expected,' said Chris Weston, head of research at Pepperstone in Melbourne. 'The details matter, especially around the degree of rare earths bound for the U.S., and the subsequent freedom for U.S.-produced chips to head east, but for now as long as the headlines of talks between the two parties remain constructive, risk assets should remain supported.' Lutnick said China's restrictions on exports of rare earth minerals and magnets to the U.S. will be resolved as a 'fundamental' part of the framework agreement. 'Also, there were a number of measures the United States of America put on when those rare earths were not coming,' Lutnick said. 'You should expect those to come off … in a balanced way.' U.S. President Donald Trump's shifting tariff policies have roiled global markets, sparked congestion and confusion in major ports, and cost companies tens of billions of dollars in lost sales and higher costs. The World Bank on Tuesday slashed its global growth forecast for 2025 by four-tenths of a percentage point to 2.3%, saying higher tariffs and heightened uncertainty posed a 'significant headwind' for nearly all economies. A resolution to the trade war may require policy adjustments from all countries to treat financial imbalances or otherwise greatly risk mutual economic damage, European Central Bank President Christine Lagarde said on a rare visit to Beijing on Wednesday. Phone call helped The second round of U.S.-China talks was given a major boost by a rare phone call between Trump and Chinese President Xi Jinping last week, which Lutnick said provided directives that were merged with Geneva truce agreement. Customs data published on Monday showed that China's exports to the U.S. plunged 34.5% in May, the sharpest drop since the outbreak of the COVID pandemic. While the impact on U.S. inflation and its jobs market has so far been muted, tariffs have hammered U.S. business and household confidence and the dollar remains under pressure. Lutnick was joined by U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent at the London talks. Bessent departed hours before their conclusion to return to Washington to testify before Congress on Wednesday. China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors, and its decision in April to suspend exports of a wide range of critical minerals and magnets upended global supply chains. In May, the U.S. responded by halting shipments of semiconductor design software and chemicals and aviation equipment, revoking export licences that had been previously issued. US-China trade talks to resume for a second day China, Mexico, the European Union, Japan, Canada and many airlines and aerospace companies worldwide urged the Trump administration not to impose new national security tariffs on imported commercial planes and parts, according to documents released Tuesday. Just after the framework deal was announced, a U.S. appeals court allowed Trump's most sweeping tariffs to stay in effect while it reviews a lower court decision blocking them on grounds that they exceeded Trump's legal authority by imposing them. The decision keeps alive a key pressure point on China, Trump's currently suspended 34% 'reciprocal' duties that had prompted swift tariff escalation.
