The United States is set to postpone the announcement of new tariffs targeting China and other significant trading partners until after a planned meeting between U.S. President Donald Trump and Chinese President Xi Jinping. The delay aims to leverage the threat of additional tariffs as a negotiating tool during ongoing trade discussions.
Initially, the U.S. administration was preparing a report on China’s industrial capacity, which was expected to recommend a 7.5% tariff on Chinese goods. If implemented, these duties would increase the overall U.S. tariff rate on Chinese imports to approximately 20%. This level of tariffs aligns with the current trade truce between the two nations, as previously indicated by Beijing.
Ahead of the leaders’ summit, U.S. and Chinese negotiators are expected to engage in discussions to explore potential agreements. President Xi’s visit to the United States marks his first since 2023, highlighting the significance of these diplomatic efforts in resolving trade tensions.
The Trump administration’s approach to trade, initiated in March under Section 301 of the Trade Act of 1974, involves probing more than a dozen key trading partners over concerns of excessive production capacity. Any tariffs resulting from these investigations could exacerbate existing trade pressures on China and other countries.
China has signaled that it may retaliate if U.S. tariffs exceed those established during the current trade truce. Chinese officials have also expressed that using excess capacity issues as grounds for protectionist measures is unwarranted. As the Trump-Xi summit approaches, both nations aim to finalize trade commitments, with tariffs remaining a central issue in U.S.-China economic relations.