The United States is set to postpone the announcement of new tariffs on China and other significant trading partners until after a scheduled meeting between US President Donald Trump and Chinese President Xi Jinping. This delay could serve as a strategic move by Washington to use the potential tariffs as a bargaining chip in ongoing trade negotiations.
The US administration had been preparing a report on China’s surplus industrial capacity, which was anticipated to suggest a 7.5% tariff on Chinese imports. If implemented, these duties could elevate the overall US tariff rate on Chinese goods to about 20%, a threshold previously mentioned by Beijing as consistent with the current trade truce.
In preparation for the leaders’ summit, negotiators from both countries are expected to engage in discussions to explore possible agreements. President Xi’s visit would mark his first trip to the United States since 2023, adding significance to the diplomatic efforts.
Earlier this year, the Trump administration initiated investigations into over a dozen major trading partners under Section 301 of the Trade Act of 1974, focusing on issues related to excess production capacity. Any new tariffs resulting from these investigations could exacerbate existing trade tensions with China and other nations.
China has cautioned that it may retaliate if US tariffs exceed the levels established during the current trade truce. Chinese officials have also contended that concerns over excess industrial capacity should not be used as a pretext for protectionist measures.
These developments emerge as both the US and China aim to finalize trade commitments ahead of the Trump-Xi summit, with tariffs remaining a central topic in the economic dialogue between the two nations.
