US and China: Talks begin in London to defuse trade tensions

A month after their meeting in Geneva, the United States and China began a new round of negotiations in London on Monday under strict secrecy. The goal is to bridge their differences and extend the fragile trade truce.

This meeting between the world’s two major economic powers is being closely watched by the markets, which have already been unsettled multiple times in recent months due to the ongoing tariff war.

Although analysts expect this round to be less productive than the one in Switzerland—where Beijing and Washington agreed to a 90-day significant tariff reduction—Trump posted on Social Truth that "the meeting should go very well."

Additionally, Press Secretary Karoline Leavitt told Fox News on Sunday that the administration wants “China and the U.S. to continue moving forward with the agreement reached in Geneva.”

Negotiators in London

On Washington’s side, the delegation is led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, as confirmed by President Donald Trump on Friday.

On the Chinese side, the delegation is led by Vice Premier He Lifeng, who also headed the previous talks in Switzerland, according to the Chinese Foreign Ministry.

In this initial meeting of the trade consultation mechanism, both countries have declined to provide details on the progress of negotiations, which are being held behind closed doors at Lancaster House, in the heart of London.

Meeting after high tensions

This week’s meeting follows a phone conversation last Thursday between the two presidents, which Trump described as “very positive.” Following the call, Beijing media reported that Xi Jinping urged his counterpart to “redirect the course of the great ship of Sino-U.S. relations.”

Similarly, the bilateral meeting in London follows a sharp rise in tensions last week, when Trump accused China of failing to honor the terms of the de-escalation agreement signed in Geneva.

Shipments of rare earths from Beijing, a source of discord between the two countries, should be one of the key issues in the negotiations, although the agenda of items to be discussed has not been leaked. These raw materials are crucial for a wide range of products, including electric vehicle batteries.

Escalating and de-escalating tariffs

Since April, Trump has imposed broad tariffs on imports, with a particular focus on Chinese products. At their peak, U.S. duties reached as high as 145% on certain Chinese goods, while Beijing retaliated with tariffs of up to 125% on American products.

Although the Geneva agreement called for a temporary reduction of these tariffs, tensions have persisted.