US Weighs 7.5% Overcapacity Tariffs on China Ahead of Xi-Trump Talks

The United States is considering imposing an additional 7.5% tariff on Chinese goods tied to overcapacity in China's manufacturing sector, according to Bloomberg, with the move being deliberated ahead of planned talks between President Trump and Chinese President Xi Jinping. The potential levy would bring replacement tariffs closer to the 20% ceiling that China claims Washington pledged during prior bilateral trade talks, with the current replacement tariff standing at 12.5%. A separate US probe into Chinese overcapacity has been underway and could serve as the legal basis for the new duties.

However, a US official tempered expectations shortly after the reports emerged, stating that any tariff announcement not coming directly from the White House should be treated as speculation.