US-China Trade Talks Continue in London’s Second Day/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The U.S. and China have entered the second day of trade talks in London to ease tensions over tariffs and tech access. President Trump called China “not easy” but remains optimistic. Talks follow a 90-day tariff truce and ongoing disputes over semiconductors, rare earths, and market access.
US-China London Trade Talks Quick Looks
- Second day of US-China trade negotiations held at London’s Lancaster House
- Delegations led by Vice Premier He Lifeng and U.S. Commerce Secretary Howard Lutnick
- President Trump says talks are going “well,” though “China’s not easy”
- Discussions follow 90-day tariff truce agreed to in Geneva
- Disputes continue over semiconductors, rare earths, student visas
- China signals possible easing of rare earth export restrictions
- Beijing presses U.S. to lift semiconductor tech access limits
- Trump reaffirms goal to “open up China” to U.S. products
- Xi and Trump spoke by phone before talks resumed
- Negotiators remain guarded but positive about progress
Deep Look: US-China Trade Talks Continue in London Amid Lingering Tensions
LONDON — On the historic grounds of Lancaster House, a 200-year-old mansion near Buckingham Palace, U.S. and Chinese trade officials gathered for the second day of high-stakes negotiations aimed at de-escalating a prolonged trade dispute. The talks are the latest attempt to rebuild economic ties between the world’s two largest economies after years of tariff hikes and diplomatic tension.
Lutnick expressed cautious optimism as talks resumed Tuesday morning. “The talks are going well,” he said, noting that both sides intended to meet throughout the day.
President Donald Trump, speaking from Washington on Monday night, described the negotiations as “doing well,” though he added that “China’s not easy.” He emphasized his broader trade goal: “We want to open up China.”
Geneva Truce Sets the Stage
The talks in London follow a significant but temporary breakthrough in Geneva last month, where both sides agreed to a 90-day suspension of many of the 100%-plus tariffs they had imposed on each other. The truce was seen as a critical step in averting a broader economic slowdown, particularly amid global concerns over inflation and fragile post-pandemic recovery.
However, despite the temporary truce, the road to lasting resolution remains complicated.
Sticking Points: Technology and Resources
The trade war continues to be entangled with deeper national security and technological disputes. The U.S. has imposed restrictions limiting China’s access to advanced semiconductor technology—critical for artificial intelligence and national defense systems. Beijing is now demanding those restrictions be lifted, a position U.S. negotiators are unlikely to concede easily.
In return, China has indicated it may reconsider export controls on rare earth elements—critical materials used in electric vehicles, wind turbines, and consumer electronics. China controls more than 70% of the global rare earths market, and its April decision to restrict exports alarmed manufacturers around the world.
This mutual economic dependency adds urgency—but also fragility—to the talks.
Broader Diplomatic Context
The London meeting follows a renewed diplomatic effort between the two countries. Trump and Chinese President Xi Jinping held a lengthy phone call last Thursday, an effort to cool tensions and reboot stalled negotiations. Following the conversation, Trump announced via social media that the talks would resume in London.
The choice of London as the venue—neutral ground but rich in diplomatic history—underscores the importance both sides place on symbolically resetting the tone of discussions.
Still, recent flare-ups have highlighted the fragility of U.S.-China relations. Disputes have emerged not only over trade but also over academic exchanges, with new visa restrictions on Chinese students studying in the United States drawing criticism from Beijing. These cultural and academic tensions are bleeding into economic relations, further complicating negotiations.
Economic and Political Stakes
Both Washington and Beijing are under pressure to stabilize relations. Trump, in particular, has made trade a pillar of his economic strategy, and reopening Chinese markets to American goods remains a top campaign and policy priority.
“If we don’t open up China, maybe we won’t do anything,” Trump warned on Monday. “But we want to open up China.”
For Beijing, the economic pressure is also intense. Sluggish domestic growth, supply chain disruptions, and increasing reliance on domestic consumption make trade normalization with the U.S. more attractive, especially as China navigates its own internal reforms.
Observers note that while the Geneva agreement created a temporary pause, it also raised expectations. Any failure to produce tangible results in London could reignite trade tensions and trigger market volatility.
For now, both sides are keeping the tone cautious but constructive.
“We’re not out of the woods yet,” said one U.S. official close to the talks, speaking anonymously. “But both sides are showing up ready to work. That’s progress in itself.”
