Hong Kong to File WTO Complaint Over US Tariffs

Hong Kong to File WTO Complaint Over US Tariffs

Hong Kong Challenges US Tariffs

Hong Kong has announced plans to file a complaint with the World Trade Organization (WTO) in response to the US recent imposition of a 10% tariff on its goods. Chief Secretary Eric Chan criticized the US action, stating that it disregards Hong Kong’s status as a separate customs territory and violates WTO rules.

US Tariffs and Trade Restrictions

The new U.S. tariffs are part of broader measures targeting Chinese imports. In addition to the 10% tariff, the U.S. has also removed the “de minimis” duty exemption, which previously allowed packages valued under $800 to enter duty-free. This change affects retailers and shipping firms that relied on low-cost international shipping, causing disruption in global trade.

Hong Kong’s Response and WTO Filing

In response, the Hong Kong Special Administrative Region (HKSAR) Government is initiating a case under the WTO Dispute Settlement Mechanism. Officials argue that the U.S. measures are “grossly inconsistent with WTO rules” and are urging a policy reversal.

Postal Service Suspension and Market Confusion

The situation was further complicated when the U.S. Postal Service briefly suspended inbound mail and packages from China and Hong Kong. Though this decision was later reversed, it caused uncertainty among retailers and shipping companies struggling to adjust to the new trade restrictions.

Growing Trade Tensions

These developments highlight escalating trade tensions between the U.S. and China, with Hong Kong caught in the middle. The dispute is expected to have long-term implications for global trade, particularly for industries dependent on international shipping and e-commerce.

“Hong Kong to File WTO Complaint Over US Tariffs” “Hong Kong to File WTO Complaint Over US Tariffs”