The United States is set to postpone the announcement of new tariffs on China and several other major trading partners until after an anticipated meeting between President Donald Trump and Chinese President Xi Jinping. This delay is expected to provide the U.S. with additional leverage in ongoing trade negotiations.
The U.S. administration was preparing a trade report focusing on China’s excess industrial capacity, which might have recommended a 7.5% tariff on Chinese imports. If implemented, these additional duties could elevate the overall U.S. tariff rate on Chinese goods to approximately 20%. This is a level that China has previously indicated might still align with the existing trade truce between the two nations.
Negotiations between the U.S. and China are anticipated to proceed in advance of the leaders’ meeting to attempt to secure potential trade agreements. Xi Jinping’s forthcoming visit to the United States marks his first since 2023, highlighting the significance of the diplomatic engagement.
In March, the Trump administration initiated investigations into more than a dozen key trading partners under Section 301 of the Trade Act of 1974. This scrutiny targets concerns over excess production capacity, with the possibility of resulting tariffs intensifying trade pressures on China and other countries involved.
China has asserted that it may retaliate if U.S. tariffs exceed the levels that were in place when the current trade truce was established. Chinese officials have criticized the use of excess capacity issues as a justification for protectionist measures. As both countries aim to negotiate trade commitments before the Trump-Xi summit, tariffs remain a central issue in U.S.-China economic relations.