Trump weighs 7.5% tariff on China

President Donald Trump is moving toward levying a new tariff on China, reportedly set at 7.5%, to penalize the world's second-largest economy for flooding global markets with underpriced goods. The move, still being finalized, is designed to work around a Supreme Court decision that struck down Trump's earlier sweeping tariff plan. The tariff would come on top of existing tariffs, including 10% to 12.5% tariffs on 60 economies announced last month over forced-labor enforcement. Administration officials believe the 7.5% level would not endanger the one-year trade truce with Beijing or the planned late-September meeting between Trump and Chinese President Xi Jinping. The deliberations stem from a Section 301 investigation into China's excess industrial capacity. China has rejected overcapacity claims, and its Ministry of Commerce published a report defending its position. Separately, the Treasury Department warned of new secondary sanctions on countries doing business with Iran, with China being Iran's largest trade partner.