Navigating Tensions: U.S. and China Trade Talks Inch Forward in London

Trade talks between the U.S. and China in London are reportedly making substantial progress, with discussions potentially extending into a third day to negotiate dueling export controls that risk unraveling a delicate tariff truce.

Commerce Secretary Howard Lutnick indicated optimism about wrapping up the negotiations by Tuesday evening, though ongoing discussions could spill into Wednesday if necessary. "We're very much spending time and effort and energy - everybody's got their head down working closely," Lutnick commented to reporters, highlighting the intensity of the talks.

The discussions aim at a significant breakthrough following a preliminary 90-day tariff rollback deal struck in Geneva. However, pivotal issues remain, such as the U.S. seeking to lift export controls on semiconductors contingent on China's acceleration of rare earths supply.

(With inputs from agencies.)