U.S. Engages China and Japan to Ease Trade Tensions
- simpleisgd
- Jun 7
- 2 min read
As global trade tensions continue to impact key industries, the United States is stepping up negotiations with China and Japan to ease tariff pressures and restore supply chain stability. Recent talks have produced tentative progress, but much remains uncertain ahead of critical meetings in London and at the upcoming G7 Summit.
U.S. and China Move Toward Rare Earth Deal
President Donald Trump announced that Chinese President Xi Jinping has agreed to resume exports of rare earth minerals and magnets to the United States. These materials are essential for key industries such as electric vehicles, electronics, and defence manufacturing. The agreement followed a direct phone call between the two leaders and coincides with China granting temporary export licenses to suppliers working with major U.S. automakers.
London Talks to Expand on 90-Day Tariff Pause
Top U.S. officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, are set to meet with Chinese representatives in London on June 9. The talks aim to expand on a May 12 agreement in Geneva, which temporarily paused most of the tariffs the two nations had imposed on one another. However, tensions remain over ongoing Chinese export restrictions and recent U.S. technology export controls.
Japan Pushes for Tariff Relief
At the same time, Japan is working to ease tariffs imposed by the U.S. on autos, auto parts, steel, and aluminium—some of which have risen to 50%. Japan’s chief negotiator Ryosei Akazawa noted limited progress during recent talks in Washington but emphasized the urgency of reaching a deal before a new 24% auto tariff is introduced in July.
Proposals on the Table
To reach an agreement, Japan is offering a mix of concessions, including increased U.S. defense equipment purchases, adjustments to auto import standards, and expanded agricultural imports. A proposal to reduce auto tariffs based on a country’s contribution to the U.S. automotive industry is also under discussion.
High-Stakes Meetings Ahead
Both China and Japan are expected to be key topics at the upcoming G7 Summit, where President Trump is likely to meet Japanese Prime Minister Shigeru Ishiba. With supply chains, industries, and diplomatic relations at stake, the coming weeks could shape the direction of global trade for months to come.
