The United States is poised to postpone the introduction of new tariffs on China and other significant trading partners until after the anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping. This strategic delay aims to maintain leverage in ongoing trade negotiations between the two nations.
The U.S. administration had been preparing to release a trade report addressing China’s excess industrial capacity, which was expected to advocate for a 7.5% tariff on Chinese imports. Should these tariffs be implemented, the cumulative tariff rate imposed by the U.S. on Chinese goods could reach around 20%. This level is one that Beijing has previously indicated could align with the current trade truce between the two countries.
In preparation for the summit between Trump and Xi, U.S. and Chinese negotiators are set to engage in discussions aimed at reaching potential agreements. This meeting would mark Xi’s first visit to the United States since 2023. The Trump administration had initiated investigations in March into more than a dozen major trading partners under Section 301 of the Trade Act of 1974, addressing concerns over excess production capacity. Any additional tariffs resulting from these investigations could further elevate trade tensions with China and other nations.
China has cautioned that it might retaliate if U.S. tariffs surpass the levels established under the current trade truce. Chinese officials maintain that issues of excess capacity should not serve as grounds for protectionist measures. These developments occur as both countries strive to negotiate trade commitments ahead of the Trump-Xi summit, with tariffs remaining a pivotal issue in U.S.-China economic relations.