U.S. expected to delay a contemplated 7.5% China excess-capacity tariff until after Xi summit
Bloomberg reported Thursday, September 17, 2026, that the U.S. would hold a contemplated 7.5% China excess-capacity tariff, a rate USTR has not posted, until after the September 24 Trump-Xi summit.
The United States has no posted 7.5% excess-capacity tariff on Chinese goods. The Office of the U.S. Trade Representative's March 11 notice, which opened a Section 301 investigation into "structural excess capacity and production," asked for comments on tariff and non-tariff actions. It set no rate.
USTR's probe covers 16 economies, including the European Union, India, Japan, and Mexico as well as China. That case remains open after President Donald Trump and China's Xi Jinping meet.
China's Commerce Ministry said in July that replacement tariffs on Chinese goods stood at 12.5% and that Washington had pledged a 20% cap. The difference is 7.5 percentage points. Bloomberg reported in August that a draft trade report would recommend a 7.5% tariff on Chinese goods.
People familiar with the matter told Bloomberg on Thursday the United States is expected to wait until at least after the White House meeting Trump has set for September 24, a visit Beijing has not officially confirmed. The White House and USTR did not comment. Bloomberg said the reason for the delay is unclear. No source has tied that pause to other pre-summit meetings this week, including Treasury Secretary Scott Bessent's planned weekend talks with Vice Premier He Lifeng.
The iShares China Large-Cap ETF FXI, which holds Hong Kong-listed Chinese large companies, tracked Thursday's broader rally and no more.
Frequently asked
Does the U.S. actually have a 7.5% excess-capacity tariff on Chinese goods?
No: USTR's notice opening the Section 301 investigation asked for comments on possible actions but set no rate.
Where does the 7.5% figure come from?
It is the gap between the 12.5% replacement tariffs China's Commerce Ministry cited in July and the 20% cap it said Washington had pledged, and it matches the rate a draft trade report was reported to recommend.
Why is the decision being held?
Bloomberg said the reason for the delay is unclear, and the White House and USTR did not comment.
Is this only about China?
No: USTR's excess-capacity probe covers 16 economies, including the European Union, India, Japan and Mexico, and stays open after the summit.