US said to delay overcapacity tariffs until after Xi visit
On.cc · 2 SOURCESabout 4 hours ago2 MIN
Summary
The US government is expected to delay announcing new tariffs linked to alleged overcapacity among trading partners until after Chinese President Xi Jinping’s reported visit to the United States next week. Earlier reports said Washington had planned to release an overcapacity trade report before the summit, recommending an additional 7.5% tariff on Chinese goods. If implemented as previously outlined, the move would bring US tariffs on China during President Donald Trump’s second term back to around 20%. The timing has drawn attention because the tariff decision now appears to be tied to a high-level leaders’ meeting expected on September 24 local time
Key Points
- Bloomberg, citing people familiar with the matter, said the new overcapacity-related tariffs would likely be announced only after Xi’s US visit next week
- Earlier reporting said the planned overcapacity report recommended a 7.5% tariff on Chinese goods before the leaders’ meeting.
- If carried out as originally expected, Trump’s second-term tariffs on Chinese goods would return to roughly 20%.
- In March, the Trump administration launched a Section 301 investigation into overcapacity concerns involving more than a dozen major trading partners
- On September 18 in Beijing, Foreign Ministry spokesman Guo Jiakun said China and the US were maintaining communication on leaders’ interactions this year
Why It Matters
For Hong Kong readers and businesses, the delay suggests both sides may be trying to preserve room for negotiation before the summit, leaving near-term trade policy uncertainty unresolved. Any eventual tariff increase toward the previously discussed level could affect China-related supply chains, export pricing and market sentiment across the region.