With a high-stakes summit in Beijing less than three weeks away, the U.S. has launched sweeping trade investigations that put China squarely in its crosshairs, adding a new layer of friction to an already complicated relationship.
The probes, which will be conducted under Section 301 of the Trade Act of 1974, aim to identify unfair trade practices, particularly structural excess capacity and production in manufacturing sectors.
While casting a wide net over a dozen trading partners, the move takes a clear aim at China, given its well-documented issues such as overcapacity and forced labor, said Dan Wang, China director at the political consultancy Eurasia Group.
As Trump’s negotiating position has been weakened by the military aggression in Iran, “U.S. needs to establish credible threat on tariffs as it remains Trump’s top pressure tool,” Wang said, although Beijing was likely unsurprised by the escalation.
“Maximizing leverage before major bilateral meetings seems to be a standard move now,” she said.
The probes followed the U.S. Supreme Court’s decision last month to strike down Trump’s “reciprocal” tariffs, which curtailed his ability to deploy tariffs at will, giving China a boost in leverage ahead of the summit.
The Trump administration is “pivoting to its other tools to continue its tariff agenda … [tariff] is clearly a card that Trump wishes to have in his pocket for negotiations,” said Lynn Song, chief economist at ING Bank.