Lutnik said that the trade negotiations between the United States and China “go smoothly”, Lutnik said – the country
U.S. Commerce Secretary Howard Lutnick said on Tuesday that trade talks with China were going well as the two sides met the next day in London, seeking a breakthrough in export control, threatening a new breakdown between the superpowers.
Agreeing to take a step back in the first round of negotiations in Geneva in May, the two parties are seeking agreements as they accuse each other of trying to use a bunch of export-controlled supply chains.
White House economic adviser Kevin Hassett said on Monday that the U.S. could lift export controls on goods such as semiconductors if China accelerates delivery of rare earths and magnets that are crucial to the economy.
The alarm has sparked a sensation on boards and factory floors around the world after a preliminary agreement in Geneva last month to cut tariffs, which has raised concerns about a global slowdown in the trade war.
“(The conversation was going on yesterday), and I hope today (they) all day (they) today.” “They are going well and we spend a lot of time together.”
Trump's ever-changing tariff policies have fueled congestion and chaos in major ports, causing companies to lose tens of billions of dollars in sales and higher costs.
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But after Trump announced his “liberation day” tariffs in April, the markets made up most of the losses they suffered, a reset between the world’s two largest economies under the reset in Geneva.
The second round of U.S.-China talks are a critical moment for both economies after a rare call between Trump and Chinese President Xi Jinping last week.
Customs data released on Monday showed that China's exports to the United States fell by 34.5%, the sharpest decline since the competition pandemic began.
While the impact on U.S. inflation and its job market has been in trouble so far, tariffs have slammed U.S. business and household confidence, and the dollar remains under pressure.
The talks were chaired by U.S. Treasury Secretary Scott Bessent, Lutnick and U.S. Trade Representative Jamieson Greer, and China's incidental vice premier He Lifeng.
Both sides met for nearly seven hours on Monday and resumed by 1,000 GMT on Tuesday, both expected to release updates later that day.
Lutnick's agent is responsible for U.S. export control, which shows how central the rare earth has become. He did not attend the talks in Geneva when the countries reached a 90-day deal to withdraw some of the triple-digit tariffs they signed with each other.
China has a near-monopolized role in rare earth magnets, a key component of electric vehicle motors, and suspended exports of various key minerals and magnets in its April decision, which has lifted global supply chains.
In May, the U.S. responded by halting the transport of semiconductor design software and chemical and aviation equipment, revoking the previously issued export license.
Hassett said he expects to relax any U.S. export control and release rare earths once the two sides shake hands in London.
But he said any relaxed easing does not include “very, very high-end NVIDIA stuff” and refers to NVIDIA's NVDA.o's state-of-the-art AI chips that have been blocked from China's concerns about potential military applications.
“I'm talking about export controls for other semiconductors that are also very important to them,” he said.
–Other reports by Sachin Ravikumar. Written by Kate Holton. Editors by David Evans and Mark Potter
