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China and the United States began high-level trade talks in London on Monday, aiming to stabilize their fragile truce following months of escalating tariffs.
The negotiations, confirmed by Chinese state media, are taking place at Lancaster House, a historic venue managed by the U.K. Foreign Office, and mark the second round of talks after a prior meeting in Geneva in May.
The Chinese delegation is again led by Vice Premier He Lifeng, while the United States is represented by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer.
The talks follow the first publicized phone conversation between Trump and Chinese President Xi Jinping since Trump’s return to the presidency. Trump characterized the call as reaching a “very positive conclusion,” while Xi emphasized the need to “correct the course of the big ship of Sino-US relations.”
Despite the tone of diplomacy, tensions remain high. Trump has accused Beijing of failing to uphold the tariff-reduction agreement reached in mid-May in Geneva. White House Press Secretary Karoline Leavitt reaffirmed that the U.S. expects China to comply with its obligations under the deal, noting that this would be a key focus of the London discussions.
One of the most contentious issues remains China's exports of rare earth minerals, which are vital for products like electric vehicle batteries. Shipments of these materials to the United States have slowed significantly since Trump imposed steep tariffs in April, known domestically as “Liberation Day” duties.
In April, the U.S. imposed global duties that disproportionately impacted China, including additional levies of up to 145% on certain goods. China retaliated with tariffs of up to 125% on U.S. products. Although a 90-day mutual tariff reduction was agreed upon during talks in Switzerland, key differences remain unresolved.
The fallout has been visible in trade figures. China’s exports to the U.S. dropped to $28.8 billion in May, down 12.7% from $33 billion in April, according to the General Administration of Customs in Beijing.
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