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U.S., China Meet in London to Tackle Rare Earth Dispute and Tariff Standoff

Securing Chinese commitments on rare earth exports is seen as the litmus test for wider tariff relief that could stabilize strained global supply chains.

Traders work on the floor of the New York Stock Exchange (NYSE) at the opening bell on June 2, 2025, in New York City.

Overview

  • Senior U.S. and Chinese envoys led by Treasury Secretary Scott Bessent and Vice Premier He Lifeng convened in London on June 9 for their second formal trade negotiation since April’s tariff hikes.
  • Under a 90-day truce agreed in May, U.S. tariffs on Chinese goods were cut to 30% and China reduced levies on American imports to 10% to pave the way for deeper talks.
  • China’s consumer price index fell 0.1% in May while its producer price index dropped 3.3%, extending deflationary pressure into a fourth consecutive month.
  • Exports from China to the U.S. plunged about 34% year-on-year in May as businesses frontloaded shipments ahead of earlier tariff increases.
  • Global shares ticked higher on cautious optimism for a deal while investors await U.S. inflation data before the Federal Reserve’s June 18 policy decision.