The Trump administration is considering a new 7.5% tariff on China for flooding the global market with underpriced goods. Sources say the move aims to avoid endangering a trade truce and an upcoming meeting with Xi Jinping.

Twenty-five U.S. states have filed a lawsuit at the Court of International Trade challenging the Trump administration's new forced-labor tariffs, arguing they are an illegal workaround to replace struck-down import taxes.

The administration is applying a tiered tariff system to pressure global counterparts to adopt stricter forced labor enforcement. This shift marks a strategic move toward long-term trade enforcement under Section 301 of the Trade Act.