US China Trade Talks Latest Update 2025: Rare Earths, Tariffs & Tech Controls
Introduction
Recent updates from the US–China trade talks are attracting global attention. On June 9–10, 2025, high‑level meetings were held in London at Lancaster House between senior US and Chinese officials. These talks aim to ease tariffs, resolve export‑control disputes, and address supply‑chain issues—especially around rare earth minerals and advanced semiconductors.
In this article, we explore why these talks matter, what each side seeks, and how ongoing developments might affect global markets, manufacturers, and consumers in the coming months.
Why These Talks Matter
.1 Trade War Background
Since 2018, the US and China have imposed heavy tariffs on each other’s goods. Under President Trump’s second term, tariffs increased again—peaking up to 125% on some Chinese imports—deepening economic strain. Both sides paused a truce in May 2025 in Geneva, agreeing to cut tariffs by 115 percentage points. But new tensions emerged almost immediately
.2 Rare Earth Minerals
Rare earths are essential for electric vehicles, smartphones, and defense tech. China dominates global supply. In April, Beijing restricted rare‑earth exports, pressuring global supply chains. The US sees these minerals as a strategic resource and wants China to resume export approvals faster
.3 Semiconductor Controls
The US has restricted China’s access to advanced chips and chip‑design software. Washington is now signalling possible easing of these restrictions, in exchange for China freeing up rare‑earth exports
What Happened in London (June 9–10)
.1 Delegations and Location
The talks took place at Lancaster House, London. On the US side: Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and Trade Representative Jamieson Greer. China’s team was led by Vice‑Premier He Lifeng, along with Commerce Minister Wang Wentao, Li Chenggang, and other officials
.2 Day One: Opening Discussions
Hundreds of minutes were spent on substantive issues. President Trump said “China’s not easy” but reports were good . Both sides emphasized the importance of reviving the Geneva truce and taking tangible action on export controls.
.3 Rare Earths in Focus
China reportedly signalled a willingness to lift rare‑earth restrictions. In contrast, the US hinted it could ease semiconductor export limits if China sped up rare‑earth exports
.4 Day Two: “Going Well”
On June 10, Commerce Secretary Lutnick confirmed the talks were “going well,” continuing deeply into the second day . Officials spent long hours hashing out details about export controls and trying to lay groundwork for lasting cooperation .
Economic and Market Reactions
.1 Stock Markets Rise
Asian markets gained amid optimism. India’s Times of India noted that markets rose on the possibility of tariffs being rolled back.
In the UK, the FTSE 100 nearly hit record highs, buoyed by trade‑talk optimism
.2 Oil and Commodities
Oil prices climbed to seven‑week highs in expectation of stronger global growth if tensions ease .
Gold prices also rose slightly, showing cautious optimism .
.3 Rare Earth Stocks
Shares of MP Materials, a US rare‑earth miner, jumped nearly 8% on day one and another 3% on day two—about a 50% rise since late May. This reflects strong investor confidence in a resolution.
Key Negotiation Themes
.1 Tariff Cuts and Reopening Markets
Building on the Geneva framework, the talks focus on rolling back most of the tariffs—especially those above 100%—to around 30% for US‑China trade
China wants access for US exporters in agriculture, energy, and technology, while the US pushes for lowered Chinese tariffs.
.2 Export‑Control Exchange
Reportedly, the US may gradually relax chip and tech export limits if China expedites rare‑earth exports. This quid pro quo could benefit both sides—ensuring US manufacturers access Chinese minerals and Chinese firms get access to advanced chips
.3 Visa and Student Issues
Beijing has criticized US visa cancellations for Chinese students. The US counters that China has not lived up to Geneva agreements. Resolution of visa issues could contribute to smoother diplomatic relations.
.4 Supply‑Chain Security
Both sides recognize supply chains are fragile. The US worries about overreliance on China; China worries about US sanctions. The talks may lead to cooperation on supply‑chain transparency and diversification.
What Comes Next
.1 Additional Rounds
Talks are now well underway. While London marked a strong start, further rounds—possibly in Washington or Beijing—will finalize detailed implementation steps.
.2 Timing and Outcome
Expect short‑term gestures (e.g., rare‑earth export approvals, easing chip export hurdles) followed by longer‑term action on tariffs. Each side will review outcomes before deciding if further concessions are viable.
.3 Watch List
Keep an eye on the following:
- US Inflation Data (expected mid-June)
- Stock Market Reactions
- Policy Announcements on chip and mineral controls
- Statements from Trump and Xi, especially post‑talks insights
Implications for You
.1 Consumers
If tariffs roll back and export restrictions ease, consumer goods like electronics, cars, and appliances may become cheaper in the US and China.
.2 Manufacturers
Access to reliable rare‑earths and chips supports industries like electric vehicles, telecom, aerospace, and defense.
.3 Investors
Energy, mining, semiconductor, and tech stocks will likely react strongly to progress. MP Materials and other rare‑earth companies have already surged .
Summary Table
| Issue | What’s Happening |
|---|---|
| Tariffs | Geneva truce cut, talks aim to rollback more to ~30% |
| Rare‑earth exports | China may lift restrictions, US seeking more reliable access |
| Semiconductor access | US may ease chip export controls if China speeds up minerals |
| Student visas | Mutual criticisms; resolution may ease educational exchange |
| Markets | Stocks, gold, oil responding positively – cautious optimism prevails |
For more details on the London meeting outcomes, you can read the full https://ustr.gov/about-us/policy-offices/press-office/press-releases
Conclusion US China trade talks latest update
The June 2025 London talks mark a crucial phase in US‑China relations. By focusing on rare earths and semiconductors, both sides are addressing strategic bottlenecks with real economic impact. While much remains to be worked out, early signals are promising.
Ongoing dialogue—backed by market shifts and high-level commitment—raises hope for practical progress. As these talks unfold, consumers, manufacturers, and investors worldwide should stay alert: these outcomes may shape prices, supply chains, and economic growth in the months to come.
Explore More: https://update4u.net/category/business-finance/