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The US is reportedly delaying a proposed 7.5% tariff on Chinese goods until after Donald Trump meets Chinese President Xi Jinping in Washington on September 24.
US President Donald Trump (REUTERS)
A new US tariff decision targeting Chinese goods could be kept on hold until after Donald Trump meets Chinese President Xi Jinping in Washington on September 24, Blomberg reported, citing people familiar with the matter.
The proposed tariffs are related to concerns in the US over China’s excess manufacturing capacity. The Trump administration had earlier planned to publish a report on the issue before the two leaders met. That report was expected to recommend an additional 7.5% duty on Chinese imports.
The timing of the announcement has now changed, although the reason for the delay remains unclear. It is also not known whether the 7.5% rate will remain unchanged if the tariffs are eventually introduced.
Trade Truce Faces Fresh Test
The possible delay comes at a sensitive point in US-China trade relations. Washington and Beijing are trying to prevent their existing trade truce from breaking down while negotiating a broader and longer term agreement.
An additional 7.5% tariff would take the extra US tariff burden on Chinese products to about 20%, based on Bloomberg’s earlier report. China has previously indicated that a 20% ceiling is in line with the terms of the current trade understanding between the two countries.
The effective US tariff rate on goods imported from China was 22.8% in July, according to the Penn Wharton Budget Model. Among major US trading partners, China had the highest effective rate at the time.
Tariff War Has Eased Since 2025 Peak
The latest proposal is still far below the tariff levels reached during the sharp escalation between Washington and Beijing last year.
US tariffs on Chinese goods rose to 145% in April 2025. China responded with tariffs of 125%. The two sides have since brought those rates down, although tariffs targeting specific sectors continue to remain in place.
The proposed excess capacity duties are also part of a wider effort by the Trump administration to reshape its tariff policy following the Supreme Court’s decision against the earlier global tariffs imposed under the International Emergency Economic Powers Act.
Section 301 Probe Covers 16 Economies
Washington has been looking at alternative legal mechanisms to impose new duties. In March, the US Trade Representative began Section 301 investigations into 16 economies over concerns surrounding structural excess capacity and manufacturing output.
The investigation covers China, India, the European Union, Japan, South Korea, Vietnam, Mexico and several Southeast Asian economies.
The US says the inquiry will examine whether government policies and practices in other countries are contributing to production levels that exceed domestic or global demand and affect US commerce.
Trade And Technology Issues To Feature In Summit
The tariff dispute is part of a wider set of disagreements between the two countries. Washington and Beijing are also negotiating over technology, rare earths and the overall balance of trade.
Trade between the US and China reached $400.8 billion in the first eight months of 2026, according to Chinese customs data. Chinese exports made up around 75% of that total.
The two sides are also discussing a framework that could involve tariff reductions covering products worth about $30 billion from each country.
The tariff decision also comes as Washington takes a tougher line on countries buying Russian energy. A Russia sanctions bill passed by the US Congress could allow the Trump administration to impose additional tariffs on countries that continue purchasing Russian oil and gas. China is among the major buyers of Russian energy, adding another point of tension ahead of the Trump Xi meeting.
The issue could add another layer to the trade discussions between Trump and Xi, with tariffs, energy purchases, rare earths and technology expected to remain key areas of disagreement.
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Ask News18The US tariff decision targeting Chinese goods over excess manufacturing capacity could be held on hold until after Donald Trump meets Chinese President Xi Jinping in Washington on September 24. The exact reason for the delay remains unclear.
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Anushka Vats is a Sub-Editor at News18.com with a passion for storytelling and a curiosity that extends beyond the newsroom. She covers both national and international news. For more stories, you can …Read More
September 18, 2026, 4:25 PM IST
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