Hong Kong plans to file a complaint with the World Trade Organization (WTO) regarding new U.S. tariffs imposed on its products, the government announced on Friday.
The U.S. recently applied a 10% tariff on Chinese goods and removed a customs exception that previously allowed small-value parcels to enter the U.S. without being taxed.
These actions have already led China to request WTO dispute consultations with the U.S., while also announcing retaliatory tariffs on select U.S. imports and launching an antitrust investigation into Google.
In a statement, the Hong Kong government criticized the U.S. measures, calling them “grossly inconsistent with the relevant WTO rules” and emphasizing that they disregarded Hong Kong’s status as a separate customs territory. The government has urged the U.S. to correct these actions.
This is not the first time Hong Kong has taken its trade disputes with the U.S. to the WTO. As a former British colony that returned to Chinese rule in 1997, Hong Kong operates as a semi-autonomous region with its own economic and social systems, distinct from mainland China.
During former U.S. President Donald Trump’s administration, Hong Kong filed a complaint against the U.S. requirement for products made in the city to be labeled as “Made in China.” In 2022, WTO arbitrators ruled that the U.S. was wrong in enforcing this labeling requirement for Hong Kong-produced goods.
The WTO confirmed on Tuesday that it had received China’s request for consultations with the U.S. over the tariffs imposed on Chinese goods. This starts a 60-day period for the two parties to attempt to resolve their dispute. If no agreement is reached, the case can be brought before a panel of three judges at the Geneva-based trade organization.
However, the WTO’s dispute-resolution process has faced challenges in recent years due to multiple U.S. administrations blocking the appointment of judges to its appeals court.
In a separate development, Hong Kong’s post office announced on Thursday that it would continue suspending shipments of items containing goods to the U.S. until further notice, despite the U.S. reversing its ban on packages from Hong Kong and other parts of China.
The Hong Kong government recently announced that Hongkong Post is in discussions with the U.S. postal service, although there are still some unresolved issues, particularly concerning tariffs. The government expressed strong disapproval of the additional tariffs imposed by the U.S. on Hong Kong goods and called on the U.S. to urgently correct its actions.
Earlier this week, the U.S. Postal Service declared it would stop accepting parcels from China, including Hong Kong. However, the decision was quickly reversed the next day without any explanation. The Postal Service stated it would collaborate with Customs and Border Protection to create a new process for collecting the additional tariffs to prevent delivery delays.
Despite the swift reversal, the brief ban caused confusion for those attempting to mail items from Hong Kong to the U.S. It also raised concerns about the potential effects on online shopping platforms like Shein and Temu, which are popular among young shoppers in the U.S. for affordable clothing and products typically shipped from China.
Affordable and direct postal services are crucial for companies like Shein and Temu to maintain low costs, as was the case with the “de minimis” exemption, which allowed shipments valued under $800 to be exempt from taxes.
In 2023, the U.S. imported approximately $427 billion worth of goods from China, according to the U.S. Census Bureau. The largest categories of imports were consumer electronics, such as cellphones, computers, and various tech accessories.