President Donald Trump and Chinese President Xi Jinping are meeting in Washington amid ongoing tensions over China’s persistent trade surplus and export strategies. Despite the Trump administration’s use of tariffs aimed at rebalancing trade relations, China continues to flood global markets with low-cost goods, raising concerns about the impact on U.S. and global industries.

China’s export-driven growth model, heavily supported by government subsidies, has long been a point of contention for Western economies, including the United States. Chinese products ranging from automobiles and solar panels to steel and minerals have increasingly dominated international markets, challenging domestic manufacturing sectors abroad. The issue has been a longstanding concern, transcending administrations of both major U.S. political parties, and drove the Trump administration’s imposition of sweeping tariffs on Chinese goods.

Since the introduction of tariffs, China’s exports to the U.S. have declined significantly, with bilateral trade in goods and services falling 25 percent last year. However, China’s global export volume continues to expand, leading economists to suggest that Chinese goods may still be entering the U.S. via third-party countries. This dynamic underscores the complexity of addressing China’s trade imbalance through tariffs alone.

The Trump administration has voiced frustration over what it describes as China’s excess industrial capacity, which it argues fuels global market saturation and undermines U.S. manufacturing. Treasury Secretary Scott Bessent and other officials have emphasized that reliance on inexpensive imports should not define the American economic model or “the American dream.” In August, White House trade adviser Peter Navarro released a report accusing China of circumventing U.S. tariffs by routing exports through over 40 other countries.

As part of its strategy, the Trump administration is considering broader tariffs targeting countries beyond China that also maintain trade surpluses with the United States, including members of the European Union, India, Norway, and Mexico. These measures, which could impact over 40 nations, are framed as a response to global excess capacity stemming from subsidies, currency manipulation, and lax labor regulations in foreign industries.

Several countries targeted by these potential tariffs have pushed back, arguing that their trade surpluses result from legitimate factors rather than unfair practices. Norway, for example, highlighted its extensive coastline and sustainability policies as reasons for its seafood export volumes.

While the administration announced a 12.5 percent tariff on Chinese exports last month, some reports suggest the actual tariff level may be higher but suspended in part to maintain existing trade deal commitments. The U.S. and China recently agreed to extend their current trade truce for two months, until January, with Trump withholding further tariff increases ahead of this week’s summit with Xi.

Analysts note that the upcoming discussions will test whether the Trump administration can influence China’s economic policies. Some experts express skepticism, highlighting structural challenges that tariffs alone cannot resolve. The Trump administration appears poised to continue leveraging tariffs as a tool to address trade imbalances, while exploring ways to pressure both China and other trading partners.

Meanwhile, economic observers within and outside the U.S. stress that addressing job losses linked to trade competition may require not only tariffs but also investments to strengthen domestic industries and reshape supply chains. For its part, China reportedly favors encouraging investments in other countries as part of its broader trade strategy. The summit between the two leaders is closely watched as a possible turning point in the ongoing trade dispute.