economy
Trump readies a new tariff to punish China for its flood of cheap exports—without endangering his trade truce or his summit with Xi Jinping
President Donald Trump is moving toward levying a new tariff on China that would penalize the world’s second-largest economy for flooding the global market with underpriced goods, according to three people familiar with the matter.
TL;DR
- President Trump is considering a new tariff on Chinese goods, reportedly at 7.5%.
- The tariff aims to penalize China for flooding the global market with underpriced goods.
- This level is believed to avoid endangering the current trade truce with Beijing or a planned meeting with President Xi Jinping.
- The move is seen as a way to work around a Supreme Court decision that previously struck down sweeping tariff plans.
- The Trump administration is also investigating unfair trade practices in other economies, though decisions on those are not clear.
- New secondary sanctions are being prepared against countries trading with Iran, with China being Iran's largest trade partner.