U.S.-UK Talks Pave the Way: What Will Be Discussed in the China-U.S. Trade Negotiations That Could Impact Half the World?

TradingKey – After the U.S. and the UK reached the first tariff agreement in the Trump 2.0 trade-war era, the world’s eyes now turn to the China-U.S. trade talks. Despite the UK leading the charge, uncertainties still loom over the China-U.S. negotiation.

China stated that this weekend’s tariff talks were initiated at the U.S.’s request. Some analysts suggest that China’s willingness to engage helps better communicate its stance, but this does not equate to formal negotiations or concessions.

U.S. President Trump remarked that the UK’s 10% baseline tariff rate is not a template. Analysts note that both China and the U.S. will likely maintain a tough posture in these talks while avoiding blame for a global economic downturn.

The CEO of Infrastructure Capital Advisors observed, "Half the trade problems is China and the other half is the whole rest of the world."

On Thursday (May 8), Trump stated that the current 145% tariffs on China are definitely coming down, adding that he would have a very nice weekend with the Chinese delegation.

Bloomberg, citing sources familiar with the matter, reported that the U.S. aims to reduce tariffs to below 60% and believes China may be open to reciprocal measures.

However, insiders cautioned that the talks may be exploratory rather than aimed at resolving the range of issues between the two sides. The situation remains fluid, and whether tariffs will be brought down in the foreseeable future is still uncertain.

Reports indicate that the U.S. may push China to ease its restrictions on rare earth exports, imposed since early April, which are critical for manufacturing U.S. military products such as fighter jets and nuclear submarines.