US-China Trade Talks in London: More Tariff Discussions on Rare Earth Exports
Ongoing Customs Talks between Washington and Beijing Held in London's Diplomatic Circles
America and China are set to chat again about trade and tariffs, this time in the heart of London. After their initial meet-up the day prior, the talking goes on at 10:00 AM local time, according to a well-informed insider, as reported by AFP news agency. US President Donald Trump had mentioned on Monday that he was receiving "nothing but positive vibes" regarding the negotiations.
The export of rare earths from China is a major problem in this trade war. In retaliation to Trump's trade dispute, China had tightened its export control measures.
Previous dialogues in Geneva saw US officials agreeing to reduce tariffs, as per Kevin Hassett, the director of the National Economic Council at the White House. On Monday, he told CNBC that China had vowed to " distribute the rare earths and magnets we require in our entire economy." Though Beijing has let some materials go, shipments have been sluggish compared to what's desired.
Hassett remains positive about the talks, predicting "all US export restrictions to be removed" and China mass-producing rare earths.
[Background: In response to US tariffs, China had imposed export controls on seven rare earth elements on April 4, 2025, intensifying the broader trade tensions. Despite a brief tariff truce agreed upon on May 11, 2025, China delayed issuing export licenses, prolonging supply disruptions.]
[Impact: The restrictions had a significant impact on U.S. industries like automotive, robotics, and defense, causing some manufacturers to halt operations due to rare earth shortages.]
[Negotiation Dynamics: The resumption of exports under the new agreement underscores the strategic importance of rare earths for the U.S. economy and China's influence over global supply chains. The agreement also signifies the ongoing power struggle between the two countries in trade negotiations.]
[Future Outlook: The ongoing tariff talks are essential for stabilizing rare earth supply chains. The temporary truces and agreements show that progress can be made, but the situation remains volatile, hinging on political decisions.]
Source: ntv.de, AFP
- The community policy regarding the export of rare earths from China will likely be a significant topic during the US-China trade talks, given the strategic importance of these elements to various American industries, including automotive, robotics, and defense.
- As negotiations continue, the employment policies of several affected industries will be closely watched as they stand to benefit significantly from the agreement's outcome, particularly in the areas of finance and politics, where decisions made in these discussions will have a substantial economic impact.
