The World Bank on Tuesday slashed its global growth forecast for 2025 by 0.4 percentage point to 2.3%, saying that higher tariffs and heightened uncertainty posed a "significant headwind" for nearly all economies.

Officials from both sides are meeting on Monday in London, aiming to resolve differences over tariffs and supply chains that have endangered a fragile truce between the countries.

U.S. Commerce Secretary Howard Lutnick reported positive momentum in second-day trade negotiations with China in London, as both superpowers work to resolve export control disputes that have strained bilateral relations since their Geneva agreement.

U.S. and China engage in trade talks in London, focusing on resolving export control disputes. Discussions hold significant impact on the global economy, particularly concerning semiconductors and rare earths.

US and Chinese officials began trade talks in London on Monday  to resolve rare earths dispute and escalating tensions

The meeting comes against a backdrop of increasing trade hostility and heightened geopolitical tension, particularly around China’s tight grip on the supply of critical minerals.

Just weeks ago, markets rejoiced as a de-facto trade embargo between the world’s two largest economies was called off — with US President Donald Trump declaring a “total reset” with China. Yet, the reality of that reset is starting to look awfully familiar.

President Trump’s trade team in London for trade talks with China, investors monitoring the escalating situation in L.A. after Trump called in the National Guard over immigration protests, they’re also following the tit-for-tat spat between Tesla’s Elon Musk and Trump.