Trade War Heats Up: U.S. Investigates China Deal Compliance

The U.S. government is gearing up to scrutinize China's adherence to a pivotal trade deal, originally signed during President Donald Trump's early term. According to a New York Times report citing an informed source, a Section 301 probe might be unveiled as soon as Friday. This investigation could usher in additional tariffs amid growing trade tensions, coinciding with an upcoming meeting between Trump and China's President Xi Jinping.

In recent weeks, the trade hostilities between the U.S. and China, the leading global economies, have intensified after a relatively placid period. President Trump has levied further 100% duties on Chinese goods, which are poised to take effect on November 1, following China's decision to impose stringent export controls on most rare earth elements.

The escalating skirmish underscores the fragile state of the bilateral trade relationship, reflecting broader geopolitical and economic implications. The outcomes of the forthcoming meeting between Trump and Xi will be pivotal in shaping the future trajectory of U.S.-China trade relations.