President Trump said Monday that it is “not easy” to conduct trade negotiations with Beijing but he’s getting “good reports” from his team in London, which will meet with Chinese counterparts for a second day on Tuesday.
The U.S. delegation is looking to ease tensions over tariffs and ensure that China will allow the export of key rare earth minerals.
Mr. Trump, speaking at the White House, said he also wants Beijing to let more American products into their country as part of a possible trade deal.
“We want to open up China. If we don’t open up China, maybe we won’t do anything,” Mr. Trump said. “It’ll be a great thing for China, a great thing for the rest of the world.”
Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer met at Lancaster House in London on Monday with Chinese Vice Premier He Lifeng, who is leading the delegation from Beijing, for their first round of talks since a deescalation meeting in Switzerland in May.
Kevin Hassett, the director of the White House National Economic Council, said he expected the U.K. session “to be a short meeting with a big, strong handshake” around China’s willingness to export rare earth minerals, which are critical to automakers and military equipment manufacturers.
Speaking to CNBC, Mr. Hassett said the U.S. expects that “immediately after the handshake, any export controls from the U.S. will be eased, and the rare earths will be released in volume, and then we can go back to negotiating smaller matters.”
One of the minerals, samarium, is used in heat-resistant magnets that are critical components of missiles and fighter jets.
Wall Street is eagerly awaiting the outcome of the talks as investors seek assurances that Mr. Trump is making progress on his economic agenda and aggressive use of tariffs.
The Dow Jones Industrial Average broke even on Monday while the S&P 500 and Nasdaq rose slightly to kick off the trading week.
Unlike other countries that came to the negotiating table, China retaliated against Mr. Trump’s “Liberation Day” tariffs by imposing hefty levies on U.S. goods in April, sparking a trade war.
The de-escalation meeting in Geneva knocked down sky-high tariffs from both sides. The U.S. is charging a 30% tariff on Chinese goods, and China is putting a 10% tariff on American goods that cross its borders.
Mr. Trump says the tariffs are needed to recalibrate a trade relationship that resulted in a large trade deficit with China, meaning its export-heavy economy sends far more products to U.S. consumers than what China buys from American producers.
“China has been ripping off the United States for many years. Nobody charged them 10 cents, no president had the courage to charge China for whatever reason,” Mr. Trump said during a White House business roundtable.
The U.S. and China are trying to resolve trade tensions that go beyond tariffs, however.
“We want China and the United States to continue moving forward with the agreement that was struck in Geneva,” White House press secretary Karoline Leavitt told Fox News “Sunday Morning Futures” over the weekend. “The administration has been monitoring China’s compliance with the deal, and we hope that this will move forward to have more comprehensive trade talks.”
Beijing wants Washington to drop its tariffs on Chinese goods and export controls on semiconductors, while Washington wants China to open up its markets and correct trade practices it views as unfair.
For years, American leaders have complained that Beijing engages in unfair trade practices that go beyond tariffs, from stealing intellectual property to subsidizing industries that export a flood of cheap products, undercutting producers in other countries.
Mr. Trump and Chinese President Xi Jinping held a lengthy call last week, leading to the agreement to meet in London.
The U.S. administration is racing against a self-imposed July 8 deadline to strike deals with dozens of trading partners who sell plenty of products to the American market but don’t buy nearly as much from U.S. producers.
Mr. Trump issued hefty levies on those nations in April, only to pause them for 90 days to allow space for negotiations.
Recent data show exports from China plummeted by 3.4% in May compared to the prior year, dragged down by a drop in the flow of goods to the U.S. during the height of the tariff impasse between Washington and Beijing.
The National Retail Federation said Monday it expects a surge in imports during the early summer as companies prepare for the back-to-school season and busy fall-winter holidays.
Retailers want to stock up before the pauses on tariffs end in midsummer, according to Jonathan Gold, the NRF vice president for supply chain and customs policy.
“Retailers want to ensure consumers will be able to find the products they need and want at prices they can afford,” he said. “Unfortunately, there is still considerable uncertainty as to what will happen after the pauses end.”
