The United States is considering imposing additional tariffs on Chinese products due to overproduction ahead of a summit next month between President Donald Trump and Chinese President Xi Jinping. The effective tariff rate is expected to be around 7.5%.
Bloomberg reported on August 24, citing sources, that the U.S. is preparing to impose additional tariffs based on the findings of a Section 301 investigation into overproduction.
The final tariff rate and duration have not yet been determined, and there is a possibility of last-minute changes given President Trump's tendencies.
It is also reported that the U.S. is considering announcing a higher tariff rate initially, then deferring some tariffs to effectively lower the rate to 7.5%.
Bloomberg anticipates that if the additional tariffs are implemented, the burden of tariffs on Chinese products under the Trump administration would revert to about 20%. China had previously agreed to limit U.S. tariffs on its products to below 20% during trade truce negotiations. This move is seen as a way to pressure China without significantly escalating trade tensions ahead of the September summit.
This action is interpreted as President Trump continuing his protectionist stance by addressing China's overproduction issues. The Trump administration had initiated a Section 301 investigation into overproduction against China and other major trading partners in March, following a ruling by the U.S. Supreme Court that deemed reciprocal tariffs unconstitutional.
The U.S. administration is considering releasing the investigation results before the scheduled summit between President Trump and President Xi on September 24. However, it remains unclear which specific Chinese products will be targeted and what the tariff rates will be.
Jamieson Greer, the U.S. Trade Representative, stated in an interview with Bloomberg TV last month that the overproduction investigation is more complex and will take longer than the forced labor investigation.
The U.S. and China are also discussing the extension of the existing trade truce alongside tariff issues. The trade truce agreed upon last year is set to last for one year and is due to expire on November 10. Therefore, the September summit is expected to address not only the new tariff levels but also the conditions for extending the current trade truce.
* This article has been translated by AI.
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