US delays excess capacity tariffs until after Trump-Xi summit

The Trump administration is expected to postpone announcing new tariffs tied to trading partners' excess manufacturing capacity until after next week's summit between President Donald Trump and Chinese President Xi Jinping, according to Bloomberg, citing people familiar with the matter.bloomberg

Bloomberg had earlier reported that the administration planned to release a trade report on excess capacity ahead of the Sept. 24 leaders' meeting at the White House, recommending a 7.5% tariff on Chinese goods. The reason for the delay remains unclear, and it is also uncertain whether the final tariff rate will change from the previously expected level. Inside U.S. Trade first reported the delay, according to Transport Topics.ttnews+1

At the proposed rate, the new levy would restore Trump's second-term duties on China to around 20%, a level Beijing has previously described as consistent with the trade truce reached between the two governments.ttnews

Background on Section 301 Investigations

In March, the U.S. Trade Representative launched Section 301 investigations into 16 economies — including China, the European Union, South Korea, Japan, and India — over concerns about structural excess capacity and production in manufacturing sectors. Those probes were part of a broader effort to replace country-specific emergency tariffs that the Supreme Court struck down earlier this year.yna+1

A separate investigation into 60 economies over forced labor concerns resulted in final tariffs of up to 12.5% announced in July.congress+1

Stakes for the Sept. 24 Summit

The delay suggests the White House wants to avoid escalating trade tensions days before one of the most closely watched diplomatic encounters of the year. Trump is scheduled to host Xi at the White House on Sept. 24, their second meeting this year following a May summit in Beijing. Officials from both sides are expected to discuss trade, the war in Iran, and artificial intelligence.csis+3

Yonhap noted the summit comes more than four months after the Beijing meeting. The Office of the U.S. Trade Representative and the White House did not respond to requests for comment.ttnews+1