The second round of US-China tariff negotiations took place in London and ended with China. This reflects the complicated nature and high stakes of the ongoing trade war. These talks followed a 90-day pause that was agreed upon in Geneva in May and mainly focused on the contentious issues surrounding rare earth minerals and high-tech exports.
The recent phone call between President Trump and President Xi Jinping marked an important moment. Initially, Trump characterized the conversation as a success, stating that Xi had agreed to resume rare earth mineral exports. However, this agreement seems to have come after the U.S. imposed tariffs while being somewhat unaware of the potential for Chinese responses, according to NPR.
The call also resulted in an invitation for the Trumps to visit China, which indicates a level of diplomatic engagement. However, analysts suggest that the way the Chinese government presented the call, emphasizing Xi’s role as the recipient of Trump’s call and the U.S.’s initiation of the Geneva talks, suggests a possible shift in the balance of power, with China appearing to have a stronger position.
Trump seems to be giving in to China
The initial escalation of the trade war saw both sides imposing base tariffs exceeding 100 percent, which caused major disruptions in global trade. The Geneva agreement temporarily eased these tariffs, bringing them down to 30 percent for the U.S. and 10 percent for China, but many existing U.S. tariffs on Chinese goods remain.
A central issue in these negotiations has been China’s control over rare earth minerals, essential for various industries, especially in auto manufacturing. China’s near-monopoly on refining these minerals has allowed it to use its exports as a significant bargaining tool. After the U.S. imposed tariffs, China retaliated by limiting rare earth exports, which affected American companies that rely on these materials.
While China has shown a willingness to speed up the export process for businesses needing rare earths, it emphasizes that its export controls are based on domestic industrial requirements. This suggests that it is unlikely to loosen its strong grip on the global market.
As found by The Conversation, the official Chinese statement after the talk stated, “The Chinese side is sincere about this, and at the same time has its principles. The Chinese always honor and deliver what has been promised. Both sides should make good on the agreement reached in Geneva.”
The statement ended with, “The meeting in Geneva was very successful, and produced a good deal. The U.S. will work with China to execute the deal. The U.S. loves to have Chinese students coming to study in America.”
The differing interpretations of the Geneva agreement reveal a widening gap between the two nations. Trump seems to have a big issue in China while trying to deal a reported fall of MAGA.
Published: Jun 10, 2025 12:30 pm