Politics · India Bureau
Trump considers 7.5% tariff on China over market flooding concerns
The U.S. administration is exploring a targeted tariff on China to address concerns over the flooding of global markets with underpriced goods. The proposed measure represents a recalibrated approach following a Supreme Court setback to broader trade restrictions.
LSN India ·
President Donald Trump is weighing a new tariff of 7.5 per cent on China as a means to penalise the world's second-largest economy for inundating international markets with discounted merchandise, according to sources familiar with ongoing policy discussions.
Administration officials believe the proposed tariff level would allow Washington to address trade imbalances without destabilising the existing trade truce with Beijing or disrupting a planned presidential summit between Trump and Chinese President Xi Jinping scheduled for late September, the sources said on condition of anonymity.
The initiative comes as the Trump administration seeks to navigate constraints imposed by an earlier Supreme Court ruling that invalidated sweeping tariff proposals reminiscent of protectionist measures from the 1930s. The White House subsequently launched formal investigations in March to identify alternative pathways for trade enforcement that would withstand legal scrutiny.
The proposed 7.5 per cent tariff reflects a more measured approach than previously envisioned schemes, suggesting the administration is attempting to balance its trade enforcement objectives with diplomatic considerations and legal constraints. Policy finalisation remains underway as officials assess the measure's broader implications for bilateral relations and global trade dynamics.