US plans 7.5% tariff on Chinese goods before Xi-Trump summit

The United States plans to impose an additional 7.5% tariff on Chinese goods ahead of a September 2026 summit between Donald Trump and Xi Jinping. The duties, aimed at addressing Chinese industrial overcapacity, will bring total second-term tariffs to about 20%, a level Beijing previously indicated is consistent with the bilateral trade truce. Meanwhile, Washington has accused over 40 nations of aiding Chinese tariff evasion through illegal transshipment to secure leverage before the talks.

US tariff increase on China

• ▪The planned 7.5% tariff on Chinese goods will be added on top of existing levies imposed during Donald Trump's first presidential term and extended under the Biden administration.
• ▪The United States is planning to impose an additional 7.5% tariff on Chinese goods.

Chinese industrial overcapacity allegations

• ▪The United States is planning the 7.5% tariff increase on Chinese goods over allegations of industrial and excess manufacturing overcapacity in China.
• ▪The United States is attempting to step up protectionist measures against Chinese overcapacity while trying to avoid drawing a trade reprisal from Beijing.

Trade deal compliance threshold

• ▪Beijing has previously signaled that a 20% tariff level on Chinese goods is consistent with its trade truce and deal with Washington.
• ▪The planned 7.5% tariff increase will restore United States second-term duties on Chinese goods to approximately 20%.

Illegal transshipment accusations

• ▪The United States has recently accused more than 40 countries of abetting Chinese tariff evasion through illegal transshipment.
• ▪An expert told The Economist that the United States' accusations of illegal transshipment against more than 40 countries amount to a redefinition of trade.

Xi-Trump summit timing

• ▪Both the United States and China are seeking pact-compliant trade leverage ahead of the September 2026 summit between Xi Jinping and Donald Trump.
• ▪The planned United States tariff increase is scheduled to be implemented before a summit between Chinese President Xi Jinping and United States President Donald Trump in September 2026.

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