US prepares new tariffs against China ahead of Trump-Xi meeting

The United States is preparing to impose an additional 7.5% tariff on Chinese goods over concerns about China's excess production capacity. The decision is planned to be made before the meeting between US President Donald Trump and Chinese President Xi Jinping, scheduled for September.

This was reported by Bloomberg, citing sources familiar with discussions within the American administration. The new tariffs have not yet been officially announced, and certain parameters of the possible decision are still being coordinated.

If the 7.5% tariff is imposed, the cumulative level of new tariffs against China introduced during Trump's second presidential term will approach 20%. They will be in addition to some tariffs imposed earlier during Trump's first administration and retained under Joe Biden.

The new measures are linked to an investigation the US administration launched in March under Section 301 of American trade law. Washington is examining the impact of excess production capacity of several major trading partners on American industry. China is among the countries at the center of the investigation.

American officials expect to publish its results before the Trump-Xi meeting, which is to take place in Washington on September 24. The investigation results could serve as a legal basis for new tariffs.

Washington accuses Beijing of supporting overproduction in certain sectors, enabling Chinese companies to increase exports and exert pressure on producers in other countries. One of the main goals of American trade policy remains protecting its own industry from such imports.

Meanwhile, the US and China continue negotiations on extending the trade truce. Its current term expires on November 10. According to Bloomberg, the sides are also discussing which tariffs could be temporarily suspended and for how long.

Imposing an additional 7.5% rate would allow Washington to increase pressure on Beijing before the September summit, while staying within the roughly 20% level of new tariffs previously mentioned in agreements between the sides.

The Trump-Xi meeting on September 24 is expected to be another stage of negotiations between the world's two largest economies. In addition to trade, the sides intend to discuss technology restrictions, supplies of critical materials, and other contentious issues in bilateral relations.

Based on materials from: Bloomberg