After months of acrimonious exchanges and tariff escalations, the long-running trade war between the United States and China may be headed towards a truce. US President Donald Trump has said that his treasury secretary, commerce secretary and trade representative will meet their Chinese counterparts in London on Monday, following a phone call with President Xi Jinping.
Trump, who took to social media on Friday to announce the development, stated that relations with China were “back on track” and negotiations for the trade agreement were in “good shape”.
The shift in tone comes amid US accusations that China was violating the terms of a trade deal signed only last month and obstructing the export of rare-earth elements, critical to the US manufacturing and defence industries. The White House had voiced concerns that Chinese suppliers were deliberately delaying shipments, impacting key American sectors including automotive and electronics.
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However, signs of easing tension have emerged. According to reports, China has granted temporary export licences to entities that supply rare-earth materials to America’s top three automakers.
President Trump’s announcement marks a significant reversal from his earlier stance, in which he lambasted Beijing for undermining trade agreements and playing unfair. "The negotiations are in good shape," he said after the call with Xi on Thursday, adding that the bilateral relationship had seen "a positive turn".
While no official agenda has been released, the upcoming meeting in London is expected to cover the enforcement of existing agreements, future tariff arrangements, and supply chain cooperation on critical minerals. Observers are closely watching the rare-earths issue, which had threatened to become a flashpoint in the broader strategic competition between the two superpowers.
Whether the talks yield a substantive breakthrough remains to be seen. But for now, both sides appear ready to return to the negotiating table—an encouraging sign for global markets and industries heavily dependent on cross-Pacific trade.
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