US said to delay China tariffs until after Xi-Trump summit
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The US is expected to hold off announcing new tariffs on China and other trading partners until after next week's summit between Presidents Xi Jinping and Donald Trump, according to people familiar with the matter. The delay could preserve the tariff threat as leverage in negotiations. The administration had intended to release a trade report before the meeting recommending a 7.5% tariff on Chinese goods.
Key Facts
- The US is expected to postpone announcing new tariffs on China until after the Xi-Trump summit next week, according to people familiar with the matter.
- The administration had intended to release a trade report before the meeting recommending a 7.5% tariff on Chinese goods.
- US and Chinese negotiators are set to meet over the weekend ahead of Xi's state visit, which would be his first to the US since 2023.
- In March, the Trump administration launched a Section 301 investigation into more than a dozen major trading partners over excess capacity concerns.
- China's Ministry of Commerce spokesperson Huang Ling said in late August that capacity issues should not be used as a pretext for protectionism and that China reserves the right to take necessary measures.
Tariff Delay
The US is expected to hold off announcing new tariffs on China and other trading partners until after next week's summit between Presidents Xi Jinping and Donald Trump, according to people familiar with the matter. The delay could preserve the tariff threat as leverage in negotiations, though the reason for the postponement remains unclear. The administration had intended to release a trade report on alleged excess capacity before the meeting that would recommend a 7.5% tariff on Chinese goods. It is uncertain whether the final tariff rate will change from the previously expected level, which would restore Trump's second-term duties on China to around 20%.
Negotiation Timeline
US and Chinese negotiators are set to meet over the weekend to discuss any agreements ahead of Xi's state visit. The trip would be Xi's first to the US since 2023, when he met former President Joe Biden during the APEC summit in San Francisco. In March, the Trump administration launched an investigation into more than a dozen major trading partners under Section 301 of the Trade Act of 1974 over excess capacity concerns. Those expected levies, along with already-implemented duties related to forced labor, are set to eventually bring rates closer to Trump's country-specific tariffs that were overturned by the Supreme Court earlier this year.
China's Response
China has previously signaled that it could take action if US tariffs exceed prevailing levels when the trade truce was struck. Huang Ling, a spokesperson for China's Ministry of Commerce, said in late August that capacity issues should be viewed in a comprehensive and fair manner and should not be used as a pretext for protectionism. Huang added that China will continue to closely follow and comprehensively assess subsequent US moves and reserve the right to take all necessary measures.
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