Top US officials—Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer—have started high-level negotiations with China’s delegation in London.
Markets responded early Monday with an uptick in Asian stocks and a slight rally in European futures, reflecting cautious optimism about breakthrough chances.
Why this matters: China and the U.S. previously agreed in May to temporarily reduce tariffs (145% → 30% on Chinese goods; 125% → 10% on U.S. exports), but that deal is set to expire soon. The London round could extend or deepen the truce—and stabilize global supply chains
Japan–US Trade Deal Could Wrap Ahead of G7
Parallel to London, Tokyo and Washington are racing to finalize a bilateral trade agreement before the G7 Summit later this month. Japan’s lead negotiator, Ryosei Akazawa, stressed that while differences remain, both sides are pushing for a quick deal to ease crippling tariffs on autos, steel, and aluminum.
Akazawa also emphasized the urgency, warning that Japan won’t wait on broad G7 consensus—time is of the essence.
Market Pulse
| Asset | Move Today |
|---|---|
| MSCI Asia‑Pac | +0.7%, driven by trade optimism |
| U.S. Futures | Mixed; modest dip ahead of negotiations |
| Commodities | Gold and oil steady; Bitcoin dips under $106k |
What’s at Stake in Talks
At the core of the London discussions are several high-pressure flashpoints:
- Tariff Extension or Reset: The 90-day Geneva truce on tariffs expires in August. Without progress, steep duties could snap back, disrupting trade flows across autos, tech, and consumer goods.
- Technology Restrictions: Tensions reignited just one day after the Geneva agreement. The US Commerce Department issued guidance suggesting that Huawei’s Ascend AI chips may violate export restrictions, as they were likely developed using American tech.
Beijing was quick to respond, demanding Washington “immediately correct its erroneous practices.” The issue touches a long-standing Chinese grievance — US moves to choke access to critical semiconductor tools and designs. - Rare Earths Access: China controls much of the world’s rare earth production — essential for EVs, military tech, and robotics. In April, Beijing started requiring export licenses for seven rare earth elements, triggering global shortages and panic among automakers.
Trump blasted China on May 30, claiming it had “totally violated its agreement.” Since then, China has hinted at compromise, saying it’s approving some applications and will keep doing so if they meet rules. - Student Visa Revocations: In a surprising twist, the US recently announced plans to revoke visas of some Chinese students, particularly those with links to the CCP or studying in sensitive tech fields.
China called this move a violation of the Geneva consensus, accusing the US of “unilaterally provoking new economic and trade frictions.” Over 270,000 Chinese students studied in the US last academic year — making this issue not just symbolic but deeply personal for many in China’s educated elite.
What to Watch Today
- Rare‑earths & export control concessions could define the success of this round.
- Timeline risk: Geneva truce ends August 12—failure in London could lead to tariff re-escalation.
- Domestic pressure: Both Trump and Xi face internal demands to ease economic strain, boosting incentive to reach deal
Today’s trade talks in London mark a critical moment. With global markets stabilizing on cautious hope and Japan pushing a parallel agenda, this week could be decisive for U.S. economic policy and the direction of international commerce.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Related:
Washington Starts to ‘De-Musk’: 5 Stocks Poised to Gain From the Shift
Trump says relationship with Musk is over and threatens him
Elon Musk Empire Under Fire: What Trump’s Revenge Could Mean for Tesla and SpaceX
“You Mean Man Who Lost His Mind?” — Trump Slams Door on Musk
Timeline of Elon Musk and Donald Trump “Break Up”
Why Trump Can’t Just Quit Elon Musk — Even After Their Public Breakup
