Business & Finance
Trump considers 7.5% tariff on Chinese goods over industrial capacity
The potential duty follows a trade investigation into excess manufacturing and comes ahead of a planned summit with Xi Jinping.
The short version
- President Donald Trump is considering imposing a 7.5% tariff on China over allegations of flooding global markets with underpriced goods.
- The proposed measure follows a Section 301 investigation into excess industrial capacity initiated after the Supreme Court struck down a previous tariff plan.
- Officials reportedly selected the 7.5% rate to avoid disrupting a one-year trade truce and an upcoming meeting with Chinese President Xi Jinping in late September.
Key facts
- Internal White House deliberations are leaning toward imposing a new 7.5% tariff on Chinese imports, according to sources familiar with the matter.[Associated Press]
- The potential duty stems from a Section 301 investigation into excess industrial capacity launched by the Trump administration in March.[Associated Press]
- China's Ministry of Commerce previously denied that the country seeks a large trade surplus or intentionally generates excess capacity.[Associated Press]
- The White House, the U.S. Trade Representative, and the Chinese embassy in Washington did not immediately comment on the deliberations.[Associated Press]
What remains uncertain
- Whether President Trump will finalize the 7.5% tariff or alter the plan remains uncertain as internal discussions are ongoing.[Associated Press]
- It is unknown if or when the U.S. administration will announce determinations for concurrent trade probes into other economies, such as the EU, Japan, and Mexico.[Associated Press]