Customs dispute: USA and China have new discussions in the trade conflict

A new round of talks between China and the United States should defuse the trade conflict of the two world’s largest economies. For Beijing, Vice Prime Minister He Lifeng is to take part in today’s meeting in London. Finance Minister Scott Bessent, Minister of Commerce Howard Lutnick and the trade officer Jamieson Greer are sending the United States.

Among other things, disputes at the meeting are likely to be US restrictions on the sale of important technology products to China. Washington, in turn, is upset about Beijing’s export controls for rare earths. China dominates the world market for rare earths, which are very important for the production of many products.

US President Donald Trump and the Chinese state and party leader Xi Jinping had agreed the meeting on Thursday on a phone call. The first talks have been in Switzerland since a trade agreement concluded in May at a meeting in Switzerland, with which high tariffs were initially exposed.

China is critical of discussions

According to Trump, the talks are about discussing subtleties of the common trade agreement. His spokeswoman Karoline Leavitt said on US television that China had to comply with his side of the agreement. This could make the way for a more comprehensive agreement.

After the telephone call of the two heads of state, China had rather cautiously commented and the United States warned to adhere to the mutual agreements of the agreement. The US side should objectively evaluate the progress made and take back its negative measures against China, Beijing demanded.

Unlike the United States, China revealed little information before the discussion, such as the composition of his delegation. When the meeting in London should begin exactly, remained unknown.

Customs paused at a dizzying height

The trade conflict of the two states keeps the global economy in suspense. Trump has been a tough trading policy course for China since taking office. In the meantime, the Republican had increased punitive tariffs on imports from China to the USA in several steps to dizzying 145 percent, whereupon Beijing responded with counter -tariffs of 125 percent.

At the meeting in mid -May, both sides agreed on a break in the escalation spiral and at least temporarily agreed to reduce the tariff. In the end, however, the tone had become rougher again – and the underlying disagreements have not been solved.

Trump wants to reduce a billion dollar trade deficit

The United States imported significantly more than they export. China, on the other hand, drives up its economic engine with exports and imported – also because of the weak demand in the People’s Republic. Trump wants to reduce this trade deficit with the help of higher tariffs and thus also strengthen domestic production. However, many economists warn that Trump’s additional import fees in the United States should lead to higher prices and less growth in the medium term.

According to the government, the United States exported in 2024 worth a good $ 143 billion to China, conversely, goods worth $ 439 billion came to the United States. This results in a trade deficit of almost $ 300 billion.

Trump has repeatedly referred to “tariffs” as his favorite word. He has announced, threatened or already implemented numerous additional import fees. In addition to a new penalty tax of ten percent of the goods value to almost all imports, he has also announced specific, higher tariffs on imports of many countries. Large trading partners such as China and the EU are also affected. Various processes are currently underway for the legality of many tariffs. Trump has already made it clear that he wants to bring the dispute over the tariffs to the Supreme Court if necessary.