US and China to resume trade talks in London, focusing on rare earths amid ongoing tensions and tariff disputes.

The US and China will resume trade talks in London on Monday, focusing on rare-earth minerals and technology following a recent conversation between President Trump and President Xi.

Tensions increased as both nations blamed one another for failing to uphold agreements made in Geneva to lower tariffs, which had escalated over 100%. Trump expressed optimism about the upcoming meeting, citing an agreement on critical minerals.

China announced it had approved certain rare-earth export applications but did not clarify details. The US aims to restore the flow of these minerals used in essential technology.

Chinese retaliation

Trade tensions have risen this year, with increased tariffs from Trump prompting Chinese retaliation. The Geneva deal aimed to ease these tensions, but subsequent discussions faltered, resulting in complaints from both sides about disruptions.

In London, US Treasury Secretary Scott Bessent and other officials are set to meet with Chinese Vice Premier He Lifeng. Lutnick’s involvement suggests a potential reassessment of technology restrictions affecting China’s growth.

While the call between Trump and Xi sparked hope on Wall Street, optimism about reduced tariffs remains cautious. The deadline for US tariff respite is in August, prompting concerns about a return to higher rates if no agreements are reached.