U.S. and China to Hold Talk in London to Discuss Tariffs

What Happened?

Following a phone call with Chinese President Xi Jinping, U.S. President Donald Trump announced that the U.S. and China would begin a new round of bi-lateral talks in London, England, to discuss trade and tariffs between the two countries. 

President Trump posted on social media, ‘I am pleased to announce that Secretary of the Treasury Scott Bessent will be meeting in London with Representatives of China, with reference to the Trade Deal.’ The talks were underway as of Monday, June 9^th in the British capital.

Why it Matters

The trade war between China and the U.S. had been going since early 2025 when the Trump Administration instituted a sweeping series of tariffs on China. Those tariffs were temporarily paused in May, and the London talks could build on the progress that was made in Geneva, which is where the deal to temporarily halt the tariffs originated.

In addition to the U.S. Secretary of the Treasury, China’s Vice-Premier He Lifeng will be in London to participate in the discussions. Yun Sun, the co-director of the East Asia program at the Stimson Center in Washington, D.C., said the talks in London are ‘the first round of serious negotiations after Geneva to address the trade issues. And both sides carry the mandate from the top leaders.’

According to the South China Morning Post, U.S.-China tensions had escalated dramatically in the days before Thursday’s phone call between Chinese President Xi Jianping and U.S. President Donald Trump. Each accusing the other of breaching the mid-May deal in Geneva, when they agreed to cut mutual tariffs by 115 per cent for 90 days.

The Trump Administration and the government in Beijing seek to achieve the most favorable outcome for their own interests. Though both sides have come under pressure to find a way to resolve their differences for the sake of market stability. Instability has been causing economic harm for both the U.S. and China, and the trade war with their accompanying tariffs have been the major source of that instability. 

That global markets want the tariffs to end is supported by the reaction to the deal struck in Geneva in May. Upon news of the tariff pause, global markets rallied, erasing some of the losses suffered since the trade war began in February 2025. The same pattern can be observed in the past few months; each time tariffs are added, markets drop, and when those same tariffs are later removed, markets gain back much of their losses. 

How it Affects You

A long-term deal between China and the U.S. to permanently halt tariffs would be good news for global markets, businesses, and consumers. While the London talks may not achieve such a lofty goal, they could make progress towards a lasting trade deal between the U.S. and China.