US Prepares 7.5% Tariff Hike on China Ahead of Xi-Trump Summit

The US government is preparing to impose a new tariff of 7.5% on Chinese goods, which would bring cumulative tariffs on China during Donald Trump's second term to approximately 20%. This move is timed to coincide with the upcoming summit between Xi Jinping and Donald Trump in Washington on September 24, 2026.

Beijing may have already factored this in, as China has reportedly acknowledged that a 20% tariff ceiling aligns with frameworks negotiated during previous trade discussions. The new tariff stems from a Section 301 investigation into manufacturing overcapacity that launched in March 2026, covering 16 trading partners but focusing on China.

The Trump administration is weighing whether to announce a higher nominal tariff rate while suspending a portion of it, effectively landing at the targeted 7.5%. This tactic would give the White House room to escalate later without needing a new investigation or executive order.