The United States is likely to postpone the announcement of new tariffs on China and other major trading partners until after the meeting between U.S. President Donald Trump and Chinese President Xi Jinping. This strategic delay is seen as a move to leverage the potential tariffs during ongoing trade talks, according to sources familiar with the administration’s plans.
The U.S. had been preparing a trade report that could have recommended a 7.5% tariff on Chinese goods due to concerns over China’s industrial overcapacity. Such measures would potentially increase the overall tariff rate on Chinese imports to approximately 20%. This level, previously cited by Beijing, aligns with the current trade truce between the two countries.
Negotiations between U.S. and Chinese officials are expected to occur before the summit, aiming to reach agreements that could defuse trade tensions. President Xi’s visit marks his first trip to the United States since 2023, adding significance to the diplomatic engagement.
The Trump administration initiated investigations into over a dozen key trading partners, including China, in March under Section 301 of the Trade Act of 1974. These inquiries focus on issues like excess production capacity and could result in additional tariffs, further increasing trade pressure on these nations.
China has expressed concerns that any rise in U.S. tariffs beyond current levels could warrant a response. Chinese officials have also argued that the issue of excess capacity should not be used as a justification for protectionist policies. As both countries prepare for the Trump-Xi summit, tariffs continue to be a critical topic in U.S.-China economic relations.