U.S. to Hold Off on New Excess Capacity Tariffs Until After Trump-Xi Summit

According to insiders, the United States plans to defer the release of a new set of tariffs aimed at addressing perceived excess manufacturing capacity among its trading partners until after the scheduled Trump-Xi summit in Washington. Earlier reports indicated that a 7.5% duty on Chinese imports was being considered, but the administration has not clarified why the delay is occurring. The decision follows a March-initiated trade probe into South Korea, China, Japan and other economies for “structural” overcapacity, as well as a separate investigation into forced-labor practices across 60 countries.

In July, the Office of the U.S. Trade Representative finalized tariffs of up to 12.5% on South Korea, Japan and 58 other nations over forced-labor concerns. The pending tariffs are part of a broader effort to replace emergency duties struck down by the Supreme Court. By waiting until after the summit, officials may aim to keep the diplomatic agenda focused on broader issues rather than immediate trade penalties.