US Launches China Tariff Probe Ahead of Trump-Xi Meeting in 2025
The Trump administration has initiated a new trade investigation into China on October 24, 2025, raising the prospect of imposing additional tariffs on Chinese goods. This move heightens tensions between the world’s two largest economies just days before a highly anticipated summit between President Donald Trump and Chinese President Xi Jinping.
Scope and Purpose of the Investigation
U.S. Trade Representative Jamieson Greer announced the probe to evaluate whether China has fulfilled its commitments under the Phase One trade agreement struck in 2020 during Trump’s first term. The investigation will assess China’s implementation of the agreement, particularly examining if Beijing has met its purchasing targets for U.S. agricultural products, manufactured goods, energy, and services.
The inquiry will also look at the impact or burdens placed on American businesses by any non-compliance. It is a legal process under Section 301 of the Trade Act of 1974, which allows the U.S. to counter unfair trade practices. The probe could result in the imposition of new tariffs or other trade sanctions, further escalating the ongoing economic tensions.
Timing and Context Ahead of Summit
The probe’s timing is significant, occurring just ahead of the scheduled meeting between Trump and Xi at the Asia-Pacific Economic Cooperation summit in South Korea next week. This summit is widely anticipated as a critical opportunity for both sides to negotiate de-escalation in the escalating trade war, which has seen tariff hikes and reciprocal bans disrupting bilateral commerce.
Recent months have seen heightened tensions, including China tightening export controls on rare earth minerals crucial for technology manufacturing, and the U.S. announcing new tariff measures, including a threatened 100% tariff increase on certain Chinese imports starting November 1.
Broader Trade War Dynamics
While the 2020 Phase One agreement temporarily paused the trade conflict, many targets under this pact were never met, especially Chinese purchases of American soybeans and other farm products, key political issues for the Trump administration.
This investigation signals the Trump administration’s intent to hold China accountable and maintain pressure. It also complicates diplomatic efforts amid efforts to prevent the trade war from spiraling out of control and disrupting the global economy.
