The US will postpone its planned announcement of new tariffs on Chinese goods over excess manufacturing capacity allegations until after next week's summit between Presidents Xi Jinping and Donald Trump. The delayed report had been expected to recommend a 7.5% tariff, a move that would push Trump's second-term duties on China to roughly 20%.
The US will delay its announcement of new tariffs tied to excess manufacturing capacity allegations until after next week's summit between Xi and Trump, according to people familiar with the matter cited by Bloomberg News. The administration had planned to release a trade report on excess capacity before the two leaders met, but the reason for the delay remains unclear.
The report was expected to recommend a 7.5% tariff on Chinese goods. However, the final rate may differ from that previously expected level. A 7.5% tariff would bring Trump's second-term duties on China to approximately 20%, a rate Beijing had previously indicated aligns with its trade truce with Washington.
The move traces back to March, when the Trump administration opened an investigation into more than a dozen major trading partners under Section 301 of the Trade Act of 1974 over excess capacity concerns. Combined with already-implemented duties tied to forced labor, these expected levies are set to bring tariff rates closer to Trump's country-specific duties, which the Supreme Court overturned earlier this year. The Office of the US Trade Representative and the White House did not respond to requests for comment.
Source: Investing.com
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