A new trade investigation, which could pave the way for new tariffs on Chinese goods, is being launched by the government of the President of the USA Donald Trump escalating tensions ahead of the two leaders’ much-anticipated summit next week.
US Trade Representative Office spokesman Jamieson Greer announced today (10/24/2025) the launch of an investigation into whether China has complied with the limited-scope agreement signed in 2020 during Trump’s first term as president.
The investigation, as the agency said in a statement, “will examine whether China has fully implemented its commitments under the Phase One Agreement, the burden or restrictions imposed on U.S. trade by the potential failure to implement those commitments, and what measures, if necessary, should be taken in response.”
The move threatens to worsen strained relations between Washington and Beijing and could be another advantage for Trump in his meeting next Thursday with Chinese President Xi Jinping in South Korea.
The investigation is being conducted under Section 301 of the Trade Act of 1974, which allows the government to adjust imports from countries deemed to be engaging in harmful trade practices. These investigations usually last several months or longer, but they are the legal basis for the president to unilaterally impose tariffs.
Trump’s trade deal with China during his first term was partly based on Beijing’s pledges to increase purchases of US agricultural products, a source of renewed tensions this year.
The US and China have been locked in a competitive trade dispute since Trump’s return to power, which has flared up in recent weeks despite a truce that reduced tariffs between the two countries to allow for more negotiations. This moratorium on higher tariffs is expected to expire in mid-November.
The Trump administration has imposed new restrictions on China’s technology exports, while China has moved to restrict the flow of critical rare-earth minerals that are vital to many sectors, including energy, semiconductors and transportation. Trump has also threatened to impose a new 100% tariff from November 1 if China does not back down on restrictions on rare earths.
The trade dispute has also led China to cut off purchases of US soybeans, hurting US farmers who have seen markets shrink amid the US president’s trade war. But Trump has predicted he will reach a deal with Xi on trade and other issues, raising expectations for their much-anticipated summit.