US and China to Resume Trade Talks in London Amid High Stakes for Global Economy

US and Chinese officials are set to meet in London on Monday to restart trade negotiations, President Trump confirmed—renewing hopes of easing tensions between the world's two largest economies.

A New Round of Trade Talks: What to Expect

On Friday, President Donald Trump announced that top American officials will meet with Chinese representatives in London on Monday, June 9, 2025, to continue discussions on a long-delayed trade deal.

“I am pleased to announce that Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and US Trade Representative Ambassador Jamieson Greer will meet with Chinese officials regarding the Trade Deal,” Trump wrote on Truth Social.

This meeting follows a 90-minute call between Trump and Chinese President Xi Jinping on Thursday, which Trump described as encouraging. He expressed optimism that a resolution to the ongoing trade dispute might be in sight.

Who’s Representing China?

According to China’s Ministry of Foreign Affairs, Vice Premier He Lifeng will represent Beijing at the upcoming negotiations in London.

The choice of He, known for his economic expertise, signals that China is taking these talks seriously—despite recent escalations between the two countries.

The Road So Far: From Tariffs to Temporary Relief

May's Breakthrough in Geneva

The last major round of discussions, held on May 12 in Geneva, marked a positive turn. Both nations agreed to significantly reduce tariffs, which had reached historic highs. This agreement triggered:

• A boost in global stock markets

• Improved US consumer confidence

• Lower recession risk forecasts from Wall Street analysts

Tariffs That Brought Trade to a Halt

Only a month earlier, trade had nearly collapsed. The US had imposed 145% tariffs on most Chinese imports, making it nearly impossible for American companies to continue purchasing goods from their second-largest trading partner.

However, after a brief period of optimism, tensions flared up again.

What Caused the Latest Breakdown?

Accusations and Retaliations

Last week, Trump accused China of violating the terms of their recent agreement. He claimed to have made a “fast deal” to help China during a difficult time, only to feel betrayed.

“So much for being Mr. NICE GUY!” he wrote.

Key points of contention include:

• China’s refusal to lift export restrictions on rare earth materials, which are crucial for manufacturing smartphones, electric vehicles, and military hardware.

• The US response: restricting exports of semiconductor software to China and warning US firms against using Huawei-made AI chips.

• The revocation of visas for certain Chinese students studying in the US, as announced by the State Department.

China, for its part, has accused the United States of “provoking new economic and trade frictions,” claiming that Washington is creating uncertainty in global markets.

Can London Talks Get Trade Back on Track?

The stakes are high. US economic indicators remain strong, but there are signs of strain. A return to the April deadlock could risk a global recession, especially if tariffs spike again or trade restrictions widen.

Still, there are early signs of progress. According to The New York Times, China has issued a small number of rare earth export licenses, possibly as a gesture of goodwill.

“Talks have stalled, but the phone call between Trump and Xi seems to have cooled tensions,” said Scott Bessent, the US’s chief trade negotiator.

Market Reaction: Investors Stay Optimistic

Markets responded positively to the news of resumed talks. On Friday:

• The Dow Jones rose 450 points (1.1%)

• The S&P 500 gained 1.2%

• The Nasdaq jumped 1.3%

The rally was fueled by both the strong US jobs report and optimism surrounding trade negotiations.

Why This Meeting Matters

The outcome of Monday’s meeting in London could:

• Define the future of US-China economic relations

• Influence global supply chains and inflation

• Shape geopolitical dynamics in technology, energy, and manufacturing

With trust on shaky ground and political pressures mounting on both sides, negotiators will have to navigate carefully.