• According to a report by The New York Times, the Trump administration is preparing a Section 301 investigation into China.
• The report added that the investigation may be announced as soon as Friday.
• It also said that the inquiry could lay the groundwork for more tariffs on Chinese goods.

The Trump administration is reportedly launching an investigation into China's compliance with the 2020 trade deal amid rising trade tensions between the two countries.

According to a report by The New York Times, citing people familiar with the matter, the government is preparing to file a trade investigation into China's failure to uphold the terms of a trade deal signed in President Trump's first term.

The report added that the investigation could be announced as soon as Friday. It is expected to be filed by the United States Trade Representative under Section 301 of the Trade Act of 1974, which allows the administration to investigate the trade practices of foreign countries.

Potential Tariffs Loom Over Chinese Imports

The report also speculated that the proposed inquiry could lay the groundwork for more tariffs on Chinese goods, although no such decision has yet been made. 

The administration already imposes a minimum 55% tariff on certain Chinese exports, with duties on some goods substantially higher. President Trump has also threatened an extra 100% tariff if China fails to reach a new trade agreement, citing alleged manipulation of global policies involving rare earth minerals.

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