US President Donald Trump (right) and Chinese President Xi Jinping speak in the garden of Zhongnanhai in Beijing in May. [AP]
US President Donald Trump (right) and Chinese President Xi Jinping speak in the garden of Zhongnanhai in Beijing in May. [AP]

The Trump administration is expected to delay the release of a probe into overproduction by major trading partners until after the US-China summit scheduled for Sept. 24.

Bloomberg reported Thursday (local time), citing sources, that the administration had planned to release the overproduction report before the summit but is now expected to push back the timing. The report, to be issued by the US Trade Representative, is expected to include a proposal to impose an additional 7.5% tariff on Chinese goods.

Bloomberg said the reason for the delay was not clear. Observers suggest the administration is holding off to assess the summit's outcome before deciding on the tariff level, given that trade is expected to be on the agenda. Bloomberg also noted that it remains uncertain whether the actual tariff rate will differ from the 7.5% figure.

The overproduction tariffs are based on Section 301 of the US Trade Act, which allows the United States to impose tariffs and other countermeasures against trading partners that pursue policies deemed significantly unfair to American interests. The USTR launched investigations in March into overproduction and forced labor practices across 16 economies, including China, South Korea, the EU, Japan and India. In July, it imposed "forced labor tariffs" of 10 to 12.5 percent on 60 countries based on the extent to which they prohibit imports of goods made with forced labor. The USTR said at the time that overproduction tariffs would follow shortly.

South Korea was hit with a 12.5 percent tariff under the forced labor investigation. If additional overproduction tariffs are imposed, the combined rate on South Korean goods could exceed the 15 percent level the two countries had previously agreed on.

Meanwhile, Trump and Chinese President Xi Jinping are set to hold a summit at the White House on Sept. 24. The two sides are expected to discuss a range of issues, including the war with Iran, trade and AI.


kate01@heraldcorp.com