US Plans 7.5% Tariff on Chinese Goods

The United States government plans to impose a 7.5% tariff on Chinese goods, citing allegations of excess manufacturing capacity. This move would raise total duties on China to approximately 20%, a level Beijing previously described as consistent with a trade truce. The administration intends to publish the results of a Section 301 investigation into industrial overcapacity before a scheduled summit between Donald Trump and Xi Jinping in Washington on September 24.

These proposed duties follow a February Supreme Court of the United States ruling that struck down previous global levies. While the administration justifies the new tariffs through probes into forced labor and overcapacity, a coalition of 25 U.S. states has filed a lawsuit. The states allege the government is unlawfully using these investigations as a pretext to replace tariffs previously ruled illegal.

Jamieson Greer, the U.S. Trade Representative, noted that the excess capacity investigation is complex and will require more time than the forced labor probe. In response, the Ministry of Commerce of the People's Republic of China requested that the U.S. honor commitments to keep tariffs within the levels established during the Kuala Lumpur trade consultations.