US Likely to Postpone Announcement of Additional 'Overproduction' Tariffs Until After US-China Summit

"US Likely to Postpone Announcement of Additional 'Overproduction' Tariffs Until After US-China Summit"

"Content originally intended for announcement included 7.5% additional tariffs on Chinese products"

Observation that additional tariff levels may be decided based on the results of the US-China summit

Bloomberg reported that the U.S. Donald Trump administration is expected to postpone the announcement of additional tariffs, which it has been pursuing due to overproduction by major trading partners, until after the scheduled U.S.-China summit on the 24th.

Bloomberg reported on the 17th (local time), citing sources, that the Trump administration had originally planned to release a trade report on overproduction issues before the U.S.-China summit but is now expected to delay the announcement.

It is known that the report includes a plan to impose an additional 7.5% tariff on Chinese products.

Bloomberg stated that the reason for the delay in the announcement is unclear, and it is uncertain whether the actual tariff rate to be imposed will differ from the originally anticipated 7.5%.

However, as trade issues are expected to be a major agenda item at the U.S.-China summit, there is speculation that the level of additional tariffs may be decided after observing the outcome of the summit.

The U.S. Trade Representative (USTR) and the White House did not respond to Bloomberg's request for comment.

The Trump administration has reorganized its tariff policy using Section 301 of the Trade Act, among others, following the Federal Supreme Court's ruling invalidating reciprocal tariffs.

In March, the USTR initiated investigations into overproduction and forced labor against 16 economic blocs, including China, South Korea, the European Union (EU), Japan, and India, based on Section 301 of the Trade Act.

Subsequently, in July, 'forced labor tariffs' of 10-12.5% were imposed on 60 economic blocs, including South Korea and China, while 'overproduction tariffs' have not yet been announced.

In South Korea's case, a 12.5% tariff was imposed based on the results of the forced labor investigation. If additional tariffs based on the overproduction investigation results are also imposed, the tariff rate on South Korean products could exceed the 15% level previously agreed upon between South Korea and the U.S., leading the South Korean government to closely monitor related developments.

President Trump and Chinese President Xi Jinping are scheduled to hold a summit at the White House on the 24th. Both sides are expected to discuss various current issues, including the Iran conflict, trade, and artificial intelligence (AI).