President Donald Trump plans to send top members of his trade team to London on Monday to talks with representatives from China as the two economic superpowers seek greater cooperation on trade.
Last month, the two nations reached a temporary truce on tariffs as they worked toward a more comprehensive deal. However, that limited trade truce was in jeopardy until Thursday, when Trump talked directly with China President Xi Jinping.
On Friday, Trump said he was sending Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer to London for the meeting with representatives from China.
“The meeting should go very well,” Trump wrote in a social media post.
Trump said he spoke with Jinping for more than 1.5 hours Thursday morning, almost entirely on trade between the two nations. Trump said the call “resulted in a very positive conclusion for both countries.”
The phone call came almost a week after Trump accused China of failing to uphold the bargain the two countries reached in Geneva last month.
In May, the two countries reached a 90-day deal to reduce high tariffs. Both countries agreed to slash tariffs that had been so high that nearly all trade between the two nations stopped. The U.S. reduced its tariffs on China from 145% to 30% while the two nations continued to talk. China cut its levies on U.S. imports from 125% to 10%.
At the time, S&P Global said the limited agreement would bring limited relief for businesses and consumers. The credit-rating agency said the de-escalation “brings only temporary relief.” It noted that if the world’s two largest economies can’t reach a broader, more permanent trade deal in the next three months, tariffs are likely to increase again, perhaps sharply.
Businesses are likely to remain cautious about hiring in the meantime, according to the S&P report. It further said that consumer spending could remain subdued.
