US Readies a 7.5 Percent Tariff on Chinese Goods Ahead of Trump-Xi Meeting

The US government is preparing to impose a 7.5 percent tariff on Chinese goods over allegations of industrial overcapacity. According to Donya e Eqtesad, citing Bloomberg and published Tuesday, August 25, 2026 (3 Shahrivar 1405), the move is expected to be finalized before Donald Trump and Xi Jinping meet in Washington next month, on September 24 (2 Mehr). The new tariff would bring total tariffs imposed on China during Trump's second term to about 20 percent, a level Beijing has said is consistent with the two countries' trade truce.

The report said the Trump administration launched Section 301 investigations into industrial overcapacity against more than ten major trading partners in March, and separately imposed a 12.5 percent tariff on Chinese goods in July over alleged forced labor practices. The two countries' one year trade truce is due to expire on November 10 (19 Aban). US Trade Representative Jamieson Greer had earlier said delays in the overcapacity investigation's findings are unrelated to efforts to preserve the truce with Beijing.