LDN - Business

Hong Kong to file complaint with WTO on US tariffs

[February 07, 2025] By KANIS LEUNG

HONG KONG (AP) — Hong Kong will file a complaint against new U.S. tariffs on the southern Chinese city's products with the World Trade Organization, its government said on Friday.

The U.S. imposed an additional 10% tariff on Chinese goods and ended a customs exception that allowed small-value parcels to enter the U.S. without paying tax.

The measures have already prompted China to request WTO dispute consultations with the U.S., as well as announce retaliatory tariffs on select American imports and an antitrust investigation into Google.

In a statement, the Hong Kong government slammed the U.S. measures as “grossly inconsistent with the relevant WTO rules” and said they had ignored the city's status as a separate customs territory. It urged the U.S. to rectify its acts.

This is not the first time Hong Kong has taken its trade disputes with the U.S. to the WTO. Hong Kong, a former British colony that returned to Chinese rule in 1997, operates as a semi-autonomous city with separate economic and social systems from mainland China.

During U.S. President Donald Trump's previous term, Hong Kong had complained against the U.S. requirement for city-produced exports to be labeled “Made in China”. In 2022, arbitrators at the WTO concluded that the U.S. was out of line in requiring that products from Hong Kong be labeled as such.

The WTO confirmed Tuesday it received notice of China’s request for consultations with the U.S. regarding the tariffs imposed on Chinese goods. The move sets off a 60-day period for the two sides to resolve their differences, and if not, the case can be brought before a three-judge panel at the Geneva-based trade body.

However, the WTO’s dispute-resolution process has been stymied in recent years as multiple U.S. administrations blocked appointments of judges on its appeals court.

Separately, Hong Kong's post office announced late Thursday it would continue to suspend shipping items containing goods to the United States until further notice, despite its American counterpart having reversed its ban on packages from the city and other parts of China.

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Packages are seen stacked on the doorstep of a residence, Wednesday, Oct. 27, 2021, in Upper Darby, Pa. (AP Photo/Matt Slocum, File)

The Hong Kong government said in a statement that Hongkong Post was in talks with the U.S. postal administration but further clarification was still needed on certain matters, including over a tariff. It reiterated its strong disapproval over the U.S. imposition of additional duty on Hong Kong products, urging the U.S. to take “urgent actions to rectify its wrongdoing."

The U.S. post office had announced Tuesday that it would no longer accept parcels from China, including Hong Kong. It reversed course Wednesday but gave no reason, saying it would work with Customs and Border Protection to implement a collection process for the new tariffs to avoid delivery disruptions.

Although the ban was short-lived and the U-turn came within the same day for those who live in Hong Kong time zone, it confused those who wanted to post to the U.S. from the trading hub.

It also sparked concerns over the potential impact on online shopping platforms like Shein and Temu, popular with younger shoppers in the U.S. for cheap clothing and other products, usually shipped directly from China.

Cheap, direct postal service helps these companies keep costs low, as did the “de minimis” exemption that previously allowed shipments to go tax-free if their value is under $800.

The U.S. imported about $427 billion worth of goods from China in 2023, according to the U.S. Census Bureau. Consumer electronics, including cellphones, computers and other tech accessories, make up the biggest import categories.

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