US-China trade talks ‘going well’ as Treasury chief Bessent returns to Washington

US Treasury Secretary Scott Bessent said on Tuesday (Jun 10) that trade talks with Chinese counterparts in London had been productive as both sides seek to negotiate a deal on tariffs. This comes as the meetings stretch into the night on the second day of discussions between the US and China.

Bessent left the meetings earlier to return to Washington for testimony before Congress, reported AFP, citing a US official. US Commerce Secretary Howard Lutnick and trade envoy Jamieson Greer, who were also part of the delegation, will continue the talks with Chinese counterparts.

Earlier on Tuesday, Lutnick told Bloomberg Television that the negotiations with China were “going well”.

On Monday (Jun 9), US President Donald Trump told reporters, “We are doing well with China. China’s not easy.”

The recent negotiations at the UK’s historic Lancaster House were followed by the trade talks in Geneva last month, after which a temporary agreement to lower tariffs was reached. The current round of talks is expected to focus on China’s export of rare earth minerals, which are used in a range of things, including electric vehicle batteries, smartphones, and green technology.

“In Geneva, we had agreed to lower tariffs on them, and they had agreed to release the magnets and rare earths that we need throughout the economy,” Trump’s top economic adviser, Kevin Hassett told CNBC on Monday.

He added that while Beijing was releasing some supplies, “it was going a lot slower than some companies believed was optimal.”

“Our expectation is that after the handshake, any export controls from the US will be eased, and the rare earths will be released in volume,” Hassett said.

Tensions between Washington and Beijing have risen since Trump took office in January this year and unleashed a tariff war against several trade allies. The Geneva talks temporarily brought down US tariffs on China from 145 per cent to 30 per cent and China’s tariffs on American goods from 125 per cent to 10 per cent. However, Trump later accused China of “totally violating” the deal.