07-06-2025

US-China Trade Talks Resume, UK Hosts

Date: 07-06-2025
Sources: news.sky.com: 3 | scmp.com: 3
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Image Source:

Source: scmp.com

Image content: The image is a political cartoon showing a yellow briefcase labeled “Asia” being squeezed in a large vise. The vise’s left side has the colors and star of China, and the right side has the stars-and-stripes of the United States, suggesting pressure on Asia from both sides.

Summary

A tentative de-escalation in the US-China trade war is underway after a 90-minute call between Donald Trump and Xi Jinping revived negotiations and extended momentum from Geneva’s 90-day tariff pause. The UK secured a diplomatic boost by hosting the next round of talks in London, positioning itself between Washington and Beijing amid a broader UK-China reset and potential UK-US trade gains. While headline tariffs were temporarily reduced, sector-specific duties remain, and commercial pressures persist as US retailers shift shipping and tariff costs onto Chinese suppliers. Across Asia, governments cautiously welcome the pause but continue hedging between China’s economic centrality and US security and technology ties, reflecting the rivalry’s enduring structural strains.

Key Points

  • Trump and Xi held a “very good” call that revived stalled tariff talks and mutual visits.
  • London will host the next US-China negotiations, marking a diplomatic win for the UK.
  • Tariffs were temporarily reduced for 90 days, but sector-specific duties still apply.
  • US retailers are pushing Chinese suppliers to absorb shipping and tariff costs, squeezing margins.
  • Asian countries are hedging between China’s economic pull and US security and tech partnerships.

Articles in this Cluster

Diplomatic win for UK hosting US-China trade talks | US News | Sky News

The UK has secured a diplomatic boost by hosting the second round of US-China trade talks in London, following initial discussions in Geneva that temporarily paused most tariffs for 90 days. Despite subsequent accusations from both sides of breaking the Geneva deal, a call between Donald Trump and Xi Jinping revived negotiations. The UK was chosen for its geopolitical positioning amid a UK-China “reset” and because EU venues were less suitable. Hosting could also aid Britain’s push for a UK-US trade agreement, with potential sideline engagements while US officials are in London. The talks reflect Trump’s strategy of forcing face-to-face resets despite tariff-driven tensions.
Entities: United Kingdom, United States, China, Donald Trump, Xi JinpingTone: analyticalSentiment: neutralIntent: inform

Trump and China's Xi have 'very good' phone call and agree to more talks amid trade war | World News | Sky News

US President Donald Trump and Chinese President Xi Jinping had a "very good" phone call, agreeing to further tariff talks amid their ongoing trade war. The call, initiated by Trump, lasted around an hour and a half and resulted in a "very positive conclusion" for both countries. They also invited each other to visit their respective countries, with Xi cautioning the US to handle the Taiwan issue carefully to avoid conflict. The trade war had stalled after a May 12 agreement to reduce tariff rates during talks, with Trump having cut US tariffs on Chinese goods from 145% to 30% for 90 days.
Entities: Donald Trump, Xi Jinping, United States, China, TaiwanTone: analyticalSentiment: neutralIntent: inform

White House officials to meet Chinese delegation in London for next round of trade talks | US News | Sky News

Senior White House officials will meet a Chinese delegation in London on Monday for the next round of trade talks following a “very positive” 90-minute call between Donald Trump and Xi Jinping. The talks, hosted by the UK after Geneva’s first round, come amid a US-China trade war and disputes over rare earths. The Geneva meeting produced a 90-day pause on most tariffs, with the US cutting its tariff on Chinese goods from 145% to 30% and China reducing its retaliatory tariffs from 125% to 10%, though sector-specific tariffs on cars, aluminum, and steel remain. Trump said the London talks “should go very well,” with Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer leading the US side. China’s delegation has not been announced.
Entities: White House, Chinese delegation, London, Donald Trump, Xi JinpingTone: analyticalSentiment: neutralIntent: inform

US retailers demand Chinese firms pay shipping costs as trade pressure grows | South China Morning Post

US retail giants are shifting shipping costs to Chinese suppliers as trans-Pacific freight rates surge amid ongoing US-China trade tensions. Traditionally, US retailers covered shipping and tariffs, leveraging scale to keep costs low. Now, Chinese exporters—particularly in Zhejiang province—report being pressed to pay part or all of logistics expenses, with some, like garment maker Stage Group, covering shipping on most US-bound orders since late May. Retailers are also pushing suppliers to absorb up to two-thirds of US tariffs, intensifying cost pressures on Chinese factories as American companies face domestic calls to “eat the tariffs.”
Entities: US retailers, Chinese suppliers, trans-Pacific freight rates, US-China trade tensions, Zhejiang provinceTone: analyticalSentiment: neutralIntent: inform

With US-China rivalry ‘putting the squeeze’ on Asian markets, is taking sides an option? | South China Morning Post

Asian economies are being squeezed by escalating US-China rivalry, with upcoming tariff deadlines intensifying pressure. Most countries in the region are deeply tied to China through trade, supply chains, and investment—China is the top trading partner for 18 Asian countries and has led Asean trade for 15 years—while the US offers security guarantees, diversification, and access to advanced technology. This asymmetry forces governments to balance economic gains from China against strategic and security needs linked to the US. Rather than choosing sides, many are pursuing pragmatic hedging: maintaining economic links with Beijing while aligning selectively with Washington on security and enforcement to avoid overdependence and preserve flexibility.
Entities: United States, China, Asean, Asian economies, tariffsTone: analyticalSentiment: neutralIntent: analyze

Xi-Trump call a ‘step back from the brink’, but China’s neighbours still caught in rivalry | South China Morning Post

Analysts say the first Xi-Trump phone call since Trump’s return to the White House offers a brief de-escalation in US-China tensions, easing pressure on Asian countries that rely on both powers. The 90-minute, trade-focused conversation is seen as a tentative step back from the brink, but the underlying relationship remains fragile. For China’s neighbors, the detente could both relieve immediate strain and complicate longer-term balancing between economic ties with China and navigating hardline US policies.
Entities: Xi Jinping, Donald Trump, United States-China relations, trade talks, detenteTone: analyticalSentiment: neutralIntent: inform