US Commerce Secretary Howard Lutnick confirmed that trade talks with China have resumed in London for a second day. Top US and Chinese officials are working to secure a breakthrough in trade deals for the exports and imports of goods. Dialogues over the export controls for rare earth minerals and other important goods are being discussed in the ongoing talks. The stock market and the US dollar are expected to surge if the trade talks go through.

Also Read: De-Dollarization: Which Currency Will Replace the US Dollar?

President Donald Trump also said on Tuesday “We’re doing well with China. China’s not easy,” as the discussions progress. The talks come after data from the Customs Department shows that China’s exports to the US plunged 34.5% in May. This was the steepest fall recorded since the outbreak of the Covid-19 pandemic in 2020.

US & China Trade Talks Reshaping Global Policies

donald trump xi jinping china
Source: Getty Images

Trump’s tariffs have reshaped global trade with new policies and deals being rewritten in the last three months. Many countries have agreed to drop customs on US goods entering their borders fearing major economic loss. The US on the other hand, has also been impacted as the dollar remains under severe pressure.

Also Read: US Dollar on Its Way Out, Warns Texas Congressman on De-Dollarization

Reports suggest that both the US and China may agree to some concessions on goods for rare earth magnets. The metals are a crucial component for electric vehicle motors and the Communist country controls the supply which the US needs. There would be “some concessions on the US side, with respect to export control measures over the past week or two,” said Kelly Ann Shaw, former White House trade adviser during Trump’s first term in the Oval Office.

The DXY index, which measures the performance of the US dollar shows the currency struggling to climb above the 100 level. It is hovering around the 98 to 99 range for over two months and slipped back after hitting 100. China has been a tough negotiator and imposed counter-tariffs in both double and triple digits.

  • china
  • US