Trump Weighs 7.5% China Tariff Over Underpriced Goods as Xi Meeting Nears

3 articles · Updated · The Seattle Times · Aug 24

A new 7.5% tariff on Chinese goods is under consideration, with administration officials viewing that level as tough enough to punish alleged underpricing without derailing a one-year trade truce.
Section 301 investigations launched in March give Trump a legal path after the Supreme Court in February struck down his broader reciprocal tariff plan.
The proposed duty would stack on top of existing 10% to 12.5% tariffs imposed last month on 60 economies over forced-labor enforcement, a move China and others protested.
China has rejected U.S. overcapacity claims even as weak domestic demand has driven exports higher, helping push its 2025 trade surplus to a record nearly $1.2 trillion.
The tariff deliberations also come as Washington threatens new secondary sanctions on countries trading with Iran, putting added pressure on China, Tehran's biggest trade partner.