US Delays China Tariff Announcement Until Trump-Xi Meeting, Plans 7.5% Levy
4▲0 ▼0Impact / 5
The United States is expected to hold off announcing a new round of tariffs on China and other trading partners until after next week's summit between President Xi Jinping and President Donald Trump. Sources say the delay could help Washington keep its negotiating leverage, and the US government intends to publish a report on overcapacity before the two leaders meet. According to the report, the US is expected to propose a 7.5% tariff on Chinese goods, which would bring the tariffs the US collects on Chinese products during Trump's second term back to 20%, a level China says is consistent with the trade truce agreement. This weekend, US and Chinese negotiating teams are scheduled to meet to discuss various agreements before Xi visits the United States. In March, the Trump administration launched investigations into dozens of trading partners under Section 301 of the Trade Act of 1974 over overcapacity concerns. The tariffs under consideration, including those stemming from the forced labor issue that have already taken effect, are expected to push the overall tariff rate close to the level the Trump administration once imposed under the International Emergency Economic Powers Act of 1977, which the US Supreme Court struck down in February. Inside US Trade was the first outlet to report the story, while the Office of the United States Trade Representative and the White House have not yet commented.