The United States plans to postpone the introduction of new tariffs on China and other key trading partners until after a forthcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping. This delay aims to leverage the threat of tariffs in ongoing trade negotiations with China.
Previously, the Trump administration was preparing to announce a 7.5% tariff on Chinese goods as part of a trade report addressing China’s surplus industrial capacity. If implemented, these tariffs could elevate the overall U.S. tariff rate on Chinese imports to approximately 20%. China has signaled that such a level might align with the existing trade truce, established to ease tensions between the two nations.
Prior to the leaders’ summit, U.S. and Chinese negotiators are anticipated to engage in discussions to explore potential agreements. This visit marks President Xi’s first trip to the United States since 2023, providing a critical opportunity for both countries to address ongoing trade issues.
In March, the Trump administration undertook investigations into over a dozen major trading partners under Section 301 of the Trade Act of 1974, examining concerns over excess production capacity. Any tariffs resulting from these investigations would be in addition to existing duties, potentially intensifying trade pressures on China and other countries.
China has cautioned that it may retaliate if U.S. tariffs surpass the levels set during the current trade truce. Chinese officials argue that the issue of excess capacity should not justify protectionist actions. As both countries work towards negotiating trade commitments ahead of the Trump-Xi meeting, tariffs remain a significant point of contention in U.S.-China economic relations.