Officials from the United States and China are scheduled to hold a two-day meeting beginning Monday to focus on improving trade relations and reducing tensions in the ongoing trade war. This meeting follows a phone call between U.S. President Donald Trump and Chinese President Xi Jinping, marking their first communication since Trump re-entered office and implemented a significant 145% tariff on Chinese imports.
In response to Trump's tariffs, China initially imposed reciprocal tariffs of 125%. However, both nations agreed last month to a temporary de-escalation of the trade conflict, instituting a 90-day period during which the U.S. would implement a 30% tariff on certain Chinese goods, while China would apply a 10% tariff on U.S. imports.
A key topic for discussion in the upcoming meetings is the trade of rare-earth minerals, which the U.S. administration has accused China of restricting. White House economic advisor Kevin Hassett emphasized the importance of these minerals, which are essential for various industries, including technology and automotive sectors. Reports indicate that China's exports of rare-earth minerals have decreased by nearly 50% compared to the previous year, a move that may be seen as a strategic lever in negotiations.
The meeting in London will include high-ranking officials from the U.S. government, underscoring its significance in potentially restoring exports of these critical minerals. Despite assurances from the Trump administration that consumers would not experience noticeable price increases, the broader implications of the trade dynamics remain a point of concern as China's exports to the U.S. have reportedly fallen by nearly 35% year-over-year, representing the most considerable decline since the onset of the COVID-19 pandemic.