Trump Administration Weighs 7.5% Tariff on Chinese Goods Over Cheap Exports

The Trump administration is considering an additional 7.5% tariff on Chinese imports as Washington seeks to counter what it describes as excess industrial capacity and a flood of low-priced Chinese goods into global markets, adding another potential layer to US-China trade tensions.

US Treasury Secretary Scott Bessent has criticized China's export-driven economic model as Washington considers another tariff on Chinese goods.

The proposed tariff is reportedly being considered following an investigation into China's industrial overcapacity and alleged forced-labor practices.

The 7.5% rate has been reported as a potential measure, but it has not been imposed.

Treasury Secretary Scott Bessent raised similar concerns at the G20 finance ministers' meeting in Asheville, North Carolina. He said 19 of the G20 members supported addressing streams of "cheap exports" that contribute to global economic imbalances, while China dissented.

Bessent said non-market economies producing a continuing stream of cheap exports was unsustainable and urged other countries to consider measures, including tariffs, to address trade imbalances.

The G20 meeting, however, did not produce a unanimous joint communiqué on the issue. Instead, the United States issued a chair's statement reflecting language supported by 19 members, with China objecting to several sections concerning trade imbalances and other issues.

The administration's concerns come as China's trade surplus has reached record levels.

Bessent has argued that China's export-heavy economic model poses a challenge to global growth and could divert Chinese goods into other markets as US tariffs restrict access to the American market.

The reported 7.5% tariff would be relatively modest compared with some of the much higher duties imposed during the US-China trade conflict, but its economic impact would depend on which products are covered and whether China retaliates.