Trump moves toward levying new tariff on China for flooding market with cheap goods, AP sources say
Summary
President Donald Trump is planning to impose a new 7.5% tariff on Chinese goods to address China’s oversupply of cheap products in global markets, while trying to keep a current trade truce and an upcoming meeting with Chinese President Xi Jinping. This new tariff would add to existing tariffs linked to investigations about unfair trade practices and forced labor.Key Facts
- President Trump is considering a 7.5% tariff on Chinese goods for flooding markets with low-priced products.
- The tariff aims to avoid disrupting a one-year trade truce and a planned September meeting with China’s President Xi Jinping.
- The new tariff plan follows a Supreme Court decision that blocked a broader high-tariff plan by the Trump administration.
- The administration has been investigating China under Section 301 of the Trade Act of 1974, which allows tariffs against unfair trade practices.
- This tariff would be added to earlier tariffs of 10% to 12.5% on about 60 countries tied to products made with forced labor.
- China rejects the claims of excess industrial capacity and urges trade issues to be resolved through talks, not tariffs.
- The White House is also investigating other countries for unfair trade practices but no decisions have been announced yet.
- Officials involved said the tariff plan is still not finalized and could change.
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