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US and China hold London talks to ease trade war tensions

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June 9, 2025
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US and China hold London talks to ease trade war tensions
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Senior US and Chinese officials are meeting in London today for high-level talks aimed at easing trade tensions between the world’s two largest economies, amid growing market optimism and mounting pressure from slowing export growth and political unrest.

Scott Bessent, the US Treasury Secretary, is expected to be joined by top aides from President Trump’s administration as they sit down with Chinese counterparts at an undisclosed London venue. The meeting marks the latest attempt to resolve the protracted trade war that has dominated global economic headlines since early 2024.

Markets responded positively to the news, with Asian stocks rallying on hopes of a diplomatic breakthrough. Japan’s Nikkei 225 and Hong Kong’s Hang Seng index both gained around 1 per cent in early trading, buoyed by signs that the US and China may be inching closer to compromise. European markets are expected to open with more caution.

The backdrop to the talks is a fresh set of economic data from Beijing showing Chinese export growth slumped to a three-month low in May, under pressure from the latest wave of US tariffs. Analysts say the softening figures may increase Beijing’s urgency to de-escalate the trade conflict, which has already dented supply chains and global investor confidence.

The summit also comes amid unrest in the US, with protests erupting in Los Angeles over President Trump’s immigration policies. The political pressure at home may be weighing on the White House’s appetite for further economic disruption.

While no major breakthrough is expected immediately, today’s meeting is seen as a crucial step in resetting diplomatic ties and laying the groundwork for a broader agreement. With the global economy slowing and both nations facing domestic headwinds, analysts say the incentives for compromise have never been clearer.

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US and China hold London talks to ease trade war tensions

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