According to the Ministry of Commerce website, on August 27, the Ministry of Commerce held a regular press conference.
In response to questions regarding the US government's consideration of imposing an additional 7.5% tariff on Chinese imports, a spokesman for the Ministry of Commerce said that the US has initiated an 301 investigation against 16 economies, including China, on the grounds of "overcapacity." This politicization of economic and trade issues is a typical example of unilateralism and protectionism, and China firmly opposes such actions. We will continue to closely monitor and comprehensively evaluate the US's subsequent measures, and reserve the right to take all necessary steps.
According to Bloomberg report dated August 25th, sources familiar with the matter said that the U.S. government plans to impose a 7.5% tariff on Chinese goods in the near future, citing 'overcapacity'. This move will bring U.S. tariffs on China back to around 20% during Trump's second term in office.
Sources familiar with the matter added that details regarding which tax rates will be suspended and for how long remain under negotiation.
In March of this year, the Trump administration, under Section 301 of the Trade Act of 1974, launched investigations into issues related to “overcapacity” with more than a dozen major trading partners. In July of this year, the US further imposed 10% to 12.5% tariffs on 60 economies, including China, on the grounds of so-called “forced labor.” The tariff rate applied to China was 12.5%.
Bloomberg reported that U.S. officials hope to announce the results of their investigation into “overcapacity” by September 24.
