Global trade negotiations heat up as deadlines loom... June is turning into a cascading set of trade negotiation deadlines.
- U.S./China trade talks in London: U.S. and Chinese officials, including U.S. Treasury Secretary Scott Bessent, Secretary of Commerce Howard Lutnick, Trade Representative Ambassador Jamieson Greer and Chinese Vice Premier He Lifeng, are meeting in London today. This meeting comes as both nations work to resolve intensifying disputes over export controls and critical material flows, particularly regarding rare earth minerals and advanced technology components. The U.S. is pressing China to fully resume rare earth exports. Lutnick’s presence in London signals the Trump administration’s willingness to address Chinese concerns over tech access, even as he recently called for stricter enforcement to protect U.S. technological superiority.
- U.S./India trade extension: A U.S. trade delegation currently in India has extended its stay through Tuesday, signaling accelerating momentum in negotiations aimed at finalizing a phased trade deal before new reciprocal tariffs take effect July 9. Initially scheduled for June 5–6, the talks have reportedly gained traction, with most issues expected to be resolved within a week, according to sources familiar with the matter. The deal seeks to forestall tariffs introduced by President Donald Trump that would sharply raise duties on Indian goods. Lutnick said he’s “very optimistic” about an agreement in the near term.
- Trump, South Korea pledge rapid tariff resolution: President Donald Trump and South Korean President Lee Jae-myung agreed to seek a prompt resolution to ongoing tariff disputes in a 20-minute phone conversation, according to South Korea’s Yonhap News Agency. The two leaders also agreed to hold a face-to-face meeting soon, with Trump extending an invitation for Lee to visit the United States. The discussion signals growing urgency to settle trade tensions that have impacted key South Korean exports, including automobiles and electronics.
- UK/U.S. tariff deal pressure: Former trade official Crawford Falconer warned that PM Keir Starmer will need President Trump to be “extraordinarily generous” to deliver a tariff-free deal within two weeks.
- Vietnam’s $3 billion agricultural push: Vietnamese firms inked 20 agreements totaling $3 billion to import U.S. farm goods, anticipating next week’s Round 3 of official U.S./Vietnam talks.
- Japan eyes swift bilateral deal: Japan’s chief negotiator Ryosei Akazawa said a U.S./Japan trade accord may close before the G7 summit in Canada if aligned early.
Trump cracks down on Chinese drone makers... President Trump signed a sweeping set of executive orders to block foreign drone manufacturers — most notably Chinese giants DJI and Autel Robotics — from selling new models in the U.S. market, citing national security concerns. The measures call for accelerating American drone production, overhauling airspace rules and pushing military integration of low-cost, U.S.-made unmanned systems.
DJI, which controls up to 90% of the U.S. consumer drone market, has long denied security violations but has been blacklisted and designated as a Chinese military company since 2022. The crackdown builds on a 2024 law requiring a formal national security review of Chinese drone firms, with automatic bans if reviews are delayed.
New FAA mandates include fast-tracked AI-driven approval processes and rule proposals for long-range flights. The Pentagon, meanwhile, has been instructed to incorporate U.S.-made drones into defense programs, as Washington repositions drones as central to modern military power.
Healing MAHA wounds... The White House is holding a series of stakeholder meetings this week to address mounting concerns from agricultural, food manufacturing, and pesticide groups over the “Make America Healthy Again” (MAHA) Commission’s recent report, which raised alarm within rural America by spotlighting the use of controversial herbicides.
Administration officials will host hour-long sessions with small groups across the commodity chain, including farm lobbyists and chemical manufacturers, Politico reports, citing two sources familiar with the plans. The meetings come in response to weeks of quiet but aggressive lobbying by agricultural interests pushing the Trump administration to delay final recommendations until broader industry input can be gathered. The MAHA Commission, chaired by Health and Human Services Secretary Robert F. Kennedy Jr., is expected to release its recommendations on Aug. 12.
While farm groups have largely supported President Donald Trump’s trade and funding decisions — even amid sweeping tariff expansions — they have drawn the line at the MAHA Commission’s preliminary conclusions, which flagged glyphosate and atrazine for potential health risks. Though the May draft acknowledged that federal studies have not confirmed a direct link between the chemicals and adverse health effects, industry groups worry the report could cast doubt on the safety of U.S. agricultural production.
Farmers and agribusiness allies fear the commission’s language could lay the groundwork for future restrictions, particularly if environmental groups use it to pressure EPA reviews or push for local bans.
The White House has so far declined to publicly elaborate on the scheduled meetings. However, spokesperson Kush Desai released a statement noting the MAHA Commission “will continue to engage with stakeholders” and emphasized the broader coalition behind the initiative. “President Trump’s initiative to Make America Healthy Again is a bottom-up movement, with stakeholders across the board — including farmers, everyday parents, local governments and family physicians — having a role to play,” Desai said.
China’s soybean imports surge to record in May... China imported a record 13.92 MMT of soybeans in May, up 7.84 MMT (129%) from April and 3.7 MMT (36.2%) above last year. Customs clearance times returned to normal, while demand from crushing plants was strong.
China doesn’t provide a country breakdown of soybean imports in the preliminary data, though the vast majority of the May arrivals came from Brazil. U.S. soybean exports to China were likely minimal.
Through the first five months of this year, China imported 37.11 MMT of soybeans, down 0.7% from the same period last year.
China’s May exports, imports slow as tariffs bite... China’s exports rose 4.8% from year-ago to $316.1 billion in May, the smallest year-over-year gain in three months as shipments to the U.S. were slowed by tariffs and trade uncertainty. Chinese shipments to the U.S. fell by the most since 2020 in May.
Imports fell 3.4% below last year to $212.9 billion, the fourth straight decrease in purchases due to subdued domestic demand and the impact of U.S. tariffs.
China’s trade surplus widened to $103.22 billion from $96.18 billion in April. For the first five months of 2025, China recorded a total trade surplus of $471.9 billion, with exports rising 6.0% and imports falling 4.9% compared to the same period in 2024.
China’s trade surplus with the U.S. narrowed to $18 billion in May from $20.46 billion in April, as exports and imports plunged by 34.5% and 18.1%, respectively.
China’s deflationary pressures persist amid weak demand, trade uncertainty... China’s consumer prices dropped 0.1% from year-ago for the third straight month and the fourth consecutive month of consumer deflation amid sluggish domestic demand. Pork price growth slowed further (3.1% vs. 5.0%), with prices expected to remain volatile for the rest of the year amid marginally tightening supply and weakening consumer demand.
China’s producer prices fell 3.3% annually in May. This marked the 32nd consecutive month of producer deflation and the steepest decline since July 2023, driven by rising external risks amid uncertainty over U.S. tariffs and persistently weak domestic demand.