U.S.-China trade talks were set to extend to a second day in London as top economic officials from the world’s two largest economies sought to defuse a bitter dispute that has widened from
tariffs to restrictions over rare earths, threatening a global supply chain shock and slower economic growth.
Talks at Lancaster House, an ornate UK government mansion, wrapped for the night on Monday and were set to resume at 10 a.m. BST (0900 GMT) on Tuesday, a U.S. source familiar with the negotiations said.
Washington and Beijing are trying to revive a temporary truce struck in Geneva that had briefly lowered trade tensions and calmed markets.
Since then, the U.S. has accused China of slow-walking its commitments, particularly around
rare earths shipments.
U.S. President
Donald Trump said on Monday that the talks were going well and he was “only getting good reports” from his team in London.
“We’re doing well with China. China’s not easy,” Trump said, offering no details on the substance of the discussions.
Asked about lifting export controls, Trump told reporters at the White House: “We’re going to see.”
The London talks come at a crucial time for both economies, which are showing signs of strain from
Trump’s cascade of tariff orders since his return to the White House in January.
Customs data showed that China’s exports to the U.S.
plunged 34.5% year-on-year in May in value terms, the sharpest drop since February 2020, when the outbreak of the COVID-19 pandemic upended global trade.
In the U.S., business and household confidence has taken a pummeling, while first-quarter
gross domestic product contracted due to a record surge in imports as Americans front-loaded purchases to beat anticipated price increases.
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