President Donald Trump is moving toward a new tariff on China that would add a 7.5% duty on a broad range of Chinese imports. The proposal, disclosed by three sources familiar with internal deliberations, is intended to address what the administration describes as a flood of underpriced goods that threaten U.S. manufacturers.
Balancing a trade truce and a pending summit
According to the sources, the 7.5% rate is seen as low enough not to jeopardize the one‑year trade truce currently in place between Washington and Beijing. The truce is expected to hold until a White House meeting with Chinese President Xi Jinping, slated for late September, where broader trade issues will be discussed.
Legal backdrop and previous actions
The new tariff would be the latest step after a Supreme Court decision earlier this year struck down Trump’s earlier plan for sweeping, high‑tariff measures not seen since the 1930s. Following that ruling, the administration launched formal investigations in March targeting excess industrial capacity and forced‑labor practices in China and other nations.
Those investigations are conducted under Section 301 of the Trade Act of 1974, which authorizes the president to impose duties on countries that discriminate against U.S. companies or commerce. The proposed 7.5% tariff would sit on top of existing duties of 10% to 12.5% that were announced last month for 60 economies accused of failing to enforce a ban on goods produced with forced labor.
Broader trade focus
The administration’s trade agenda also includes probes of the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan and India. No definitive timeline has been provided for those investigations.
China’s embassy in Washington responded that trade and economic matters should be resolved through bilateral talks rather than unilateral tariff actions, rejecting claims that the country has an overcapacity problem.
China’s export surge and domestic challenges
China’s own officials note that a slowing domestic demand has prompted many firms to expand overseas, contributing to a record trade surplus of nearly $1.2 trillion last year. While Beijing emphasizes rebalancing its economy, the sheer scale of exports—from autos to solar panels, cement and steel—has drawn scrutiny from trading partners.
Related sanctions on Iran
In a related development, the Treasury Department warned on Monday that new secondary sanctions could target countries continuing to do business with Iran, where China remains the largest trade partner. Treasury Secretary Scott Bessent did not specify which nations might face those measures.
These moves reflect a broader strategy by the Trump administration to use trade policy as a tool for addressing perceived unfair practices while navigating legal constraints and diplomatic considerations.
Original reporting: KTBS 3 (Shreveport) — read the source article.
