Trump eyes new tariff on China amid economic tensions, AP sources say

Key Points:

• President Donald Trump is considering imposing a new 7.5% tariff on China to address the issue of China flooding global markets with underpriced goods, aiming to avoid jeopardizing the existing trade truce and a planned meeting with Chinese President Xi Jinping.
• The proposed tariff would be implemented under Section 301 of the Trade Act of 1974 and would add to existing tariffs related to forced-labor goods, reflecting a targeted approach after the Supreme Court struck down broader tariff schemes earlier this year.
• China has rejected claims of excess industrial capacity and emphasized that trade disputes should be resolved through bilateral talks rather than unilateral tariffs, while the U.S. continues investigations into unfair trade practices involving multiple countries.
• The move coincides with U.S. Treasury warnings about upcoming secondary sanctions on countries trading with Iran, with China being Iran’s largest trade partner, signaling increased pressure on nations engaging economically with Tehran.