President Donald Trump is moving toward imposing a new tariff on Chinese goods to penalize Beijing for flooding global markets with underpriced products, according to people familiar with internal deliberations.

The proposed tariff stands at 7.5 percent, a level administration officials believe would avoid endangering the one-year trade truce between Washington and Beijing. It would also leave room for a planned White House meeting between Trump and Chinese President Xi Jinping expected in late September.

The move comes after a Supreme Court decision earlier this year struck down a broader tariff plan. In response, the administration launched investigations in March targeting excess industrial capacity in China and other nations.

The new tariff would build on duties of 10 percent to 12.5 percent announced last month for 60 economies, including China, over failures to enforce bans on goods produced with forced labor. Those earlier tariffs drew objections from multiple trading partners.

Officials aim to keep the overall tariff burden on China near 20 percent, consistent with prior agreements. One option under consideration involves announcing a higher rate but suspending part of it to achieve the effective 7.5 percent level.

The excess capacity inquiry results are expected before the September 24 summit in Washington. Trump has previously emphasized protecting American manufacturing from unfair foreign competition.

China has opposed unilateral tariffs and stated that trade wars do not benefit any parties. The administration stressed that final decisions remain subject to change.