High-level delegations from the United States and China are meeting in London to preserve a fragile tariffs agreement and prevent an escalating trade war that has already disrupted global markets and raised recession concerns.
Monday’s meeting follows last month’s Geneva negotiations that provided temporary relief in the trade dispute between the world’s two largest economies. The agreement suspended most 100 percent-plus tariffs imposed by both sides for 90 days, though tensions have continued with ongoing criticism from both nations.
US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer will meet with a Chinese delegation headed by Vice Premier He Lifeng at an undisclosed London location.
President Donald Trump, who announced the talks Friday after speaking with Chinese leader Xi Jinping, expressed optimism on social media, stating “The meeting should go very well.”
White House Press Secretary Karoline Leavitt reinforced this sentiment Sunday, saying “We want China and the United States to continue moving forward with the agreement that was struck in Geneva.”
While UK Prime Minister Keir Starmer’s government confirmed it is not participating in the London talks, a spokesperson noted that “A trade war is in nobody’s interests, so we welcome these talks.”
The meeting occurs days after Trump and Xi’s first publicly acknowledged phone conversation since Trump returned to the White House in January. Trump characterized Thursday’s call as reaching a “very positive conclusion,” despite previously accusing China of violating the Geneva agreement and describing Xi as “hard to make a deal with.”
Xi, according to state news agency Xinhua, emphasized that “correcting the course of the big ship of Sino-US relations requires us to steer well and set the direction.”
The trade war’s economic impact remains significant, with Monday’s customs data showing Chinese exports to the US dropped 34.5 percent year-on-year in May, marking the steepest decline since the COVID-19 pandemic began.
Despite ongoing tensions, Asian stock markets, including China’s, gained ground Monday ahead of the new negotiation round, suggesting investor cautious optimism about potential progress in resolving the trade dispute.
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