Trump tariffs: live updates as U.S.–China talks resume Ongoing updates spotlight debates on tariffs between the U.S., China, and EU

1. U.S.–China trade talks in London resume (Day 2)

Senior U.S. officials (Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, Trade Rep Jamieson Greer) are meeting Chinese Vice Premier He Lifeng at Lancaster House in London to address tariffs, rare‑earth export restrictions, and semiconductor controls finance.yahoo.com
China asserts it holds leverage, citing resilience in its economy and strategic use of rare‑earth export controls youtube.com
U.S. officials express cautious optimism, describing proceedings as “going well,” though no final agreement has yet been reached wsj.com.

📈 2. Modest market reaction

U.S. equities edged higher, with the Dow up ~0.2%, S&P 500 and Nasdaq ~+0.3%, driven by improved sentiment around trade talks.
The dollar firmed slightly (~index 99.19), while oil remained high and gold dipped 0.5% to ~$3,310/oz.

📉 3. Broader economic context

The World Bank downgraded its 2025 global growth forecast to 2.3%, citing the drag from “erratic” U.S. tariffs and trade policy uncertainties washingtonpost.com.
Concerns include slower global trade growth (projected 1.8% vs. 3.4%), rising inflation (2.9%) from tariffs, and potential recession risks, though still under 10% reuters.com.

⚠️ 4. Tariff dynamics & EU stance

Multiple tariff rounds remain in effect—including steel, aluminum, autos, and sweeping “reciprocal tariffs” initiated April–May—and now partially paused with a 90-day negotiation window en.wikipedia.org
The EU has delayed retaliatory tariffs (initially set for June 1) to July 9, allowing time for negotiation, while avoiding full escalation—opting for a “play it cool” strategy .

🧭 Why this matters

Focus Area	Why It Matters
Trade negotiations	If productive, they could ease at least some tariffs, benefiting global trade and easing supply-chain uncertainty.
Market impact	Markets are responding positively, but gains are cautious pending concrete agreements and U.S. inflation data.
Economic forecasts	World Bank’s pessimism reflects real drag from policy uncertainty—easing could lift growth.
Geopolitical dynamics	EU choice to delay tariffs signals a strategic patience that could stabilize transatlantic relations.

✅ Bottom Line

Trade negotiations continue in London with cautious optimism, but until agreements are finalized—especially on tariffs, rare earths, and semiconductors—market reactions will remain muted. The EU’s negotiated delay shows a more nuanced approach, and the World Bank warns that unresolved trade friction continues to weigh heavily on the global economy.