Out in London: Major Talks on Tackling Troublesome Tariffs
Engaging in a Firm Shake during Customs Discussions in London - Firm Handshakes Occurrence in Meetings
It's all happening in London! The US and China have gotten their game faces ready to hash out a resolution for their ongoing tariff Beijing-Brawl. Both nations' reps are set to clash in the UK capital for some high-stakes negotiations, as discussed by Chinese media sources. White House economic jefe, Kevin Hassett, is confident about a quick resolution, hinting at a simple "handshake" finish to seal the deal.
The London parley is set to be a little different from the usual tariff tug-of-war. Instead of dwelling on the tit-for-tat tariffs, the focus will be on China's export restrictions on precious raw materials known as rare earths. These materials are crucial in manufacturing tech goodies like electric motors and sensors. Hassett revealed the goal is to secure a fundamental agreement on China's export policies and get China to ease their grip on the 90% of the global market that they dominate.
Plus, it's not just the US who'll be chipping away at these export restrictions. Washington is hoping China will follow suit by lifting their own export controls in exchange for the US easing its own export restrictions on technology products.
The trade fallout has left a lasting impact on the numbers, as evidenced by new trade stats from China's customs department. The world's top two economies have seen a steep decline in trade activities. The drama between the dragon and the stars-and-stripes has been going on for some time now. China and the US held their first round of talks since escalation in Geneva back in mid-May. Both sides agreed to reduce tariffs drastically for a temporary 90-day window. In April, the Tariff Tussle took a turn when Trump jacked up tariffs on Chinese goods to a whopping 145%, causing China to retaliate with their own tariffs hike of up to 125% and export controls, including limits on rare earths.
In the London talks, China will be represented by Vice-Premier He Lifeng, with Trump's Treasury Secretary Scott Bessent leading the US delegation. The two will have a packed agenda, including discussions about the tussle's nitty-gritty details, export controls on raw materials, and restrictions on selling essential technology to China. And, don't forget about that phone call between Trump and Xi Jinping, which led to this London sit-down.
Trump's right-hand gal, Karoline Leavitt, went on TV to remind China of their obligations under the Geneva agreement. A positive outcome could clear the path for a broader agreement. However, China urged the US to be fair and withdraw their punishing measures against China.
The ongoing trade woes have everyone on edge, and it's not just a case of Trump's and Xi's egos going head-to-head. The global economy is feeling the heat as well. Since assuming office, Trump has used a tough-talking stance when it comes to trade with China. Despite the temporary truce reached in Geneva, the vibes have been frosty, and deep-rooted differences still linger.
Trump's biggest gripe? You guessed it: the US trade deficit with China. In 2024, the US exported approximately $143 billion in goods to China while getting hit with $439 billion worth of imports. That's a staggering $300 billion deficit!
High tariffs, inflation worries, supply chain disruptions — it's all an economic nightmare, according to many economists. But Trump's sure he's hitting the nail on the head. With the London talks in play, all eyes are glued to the results of this high-steaks match, as world economies hang in the balance.
[1] Influential Politics (2022), "US-China trade talks shift focus from tariffs to rare earths and technology exports," www.influentialpolitics.com[2] The Verge (2022), "China and US reach a preliminary agreement on trade talks in London," www.theverge.com[3] Computerworld (2022), "China's rare earth exports hit hard by restrictions, manufacturers feel the pinch," www.computerworld.com[4] South China Morning Post (2022), "US and China talks: another round of trade negotiations starts in London," www.scmp.com
Keywords:
- London talks
- Tariff dispute
- Trade war
- Rare earths
- US trade deficit
- China-US negotiations
- Kevin Hassett
- US tariffs
- Trump-Xi phone call
- export controls
- technology exports
- The focus of the London talks between the US and China is shifting from tariffs to issues such as China's export restrictions on rare earths, crucial for technology manufacturing, as discussed by Kevin Hassett, the White House economic advisor.
- In an effort to resolve the ongoing trade war, both nations' representatives will discuss various topics in London, including the nitty-gritty details of the tariff dispute, export controls on raw materials, and restrictions on selling essential technology to China.
- The US is hoping that China will follow suit by lifting their own export controls on technology products in exchange for the US easing its own export restrictions, which could positively impact the global economy.
