As the United States and China inch toward formalizing the outcomes of their recent economic talks in London, markets are sending a clear signal: they want stability, not another season of tariff theatrics. Yet the Trump administration’s renewed protectionist tilt, including the looming July 9 deadline for punitive tariffs, risks derailing a fragile recovery and undermining American economic resilience.

The London meetings followed a call between President Trump and Chinese President Xi Jinping, culminating in a framework that would resume China’s rare earth exports and ease U.S. trade restrictions. It’s an imperfect deal, but it reflects an important truth: Economic coercion has failed to deliver strategic outcomes. Markets, manufacturers and consumers are all still paying the price of the last trade war.

Rare earths remain a critical node in this standoff. China refines nearly 80 percent of the global supply — inputs essential to American electric vehicles, semiconductors and defense technologies. When Beijing halted export approvals earlier this year, U.S. manufacturers faced mounting delays and soaring input costs.

The reversal eases a significant bottleneck and offers inflation relief. In exchange, China will regain access to U.S. manufacturing inputs and regulatory clarity — a win for both sides, but especially for U.S. firms squeezed by global supply chain frictions.

© The Hill