Hong Kong to File WTO Complaint Against New US Tariffs

Hong Kong is set to file a complaint with the World Trade Organisation (WTO) against new US tariffs on products from the southern Chinese city, according to a statement from its government on Friday. The US has imposed an additional 10% tariff on Chinese goods and ended a customs exception that allowed small-value parcels to enter the US without paying tax. These measures have already prompted China to request WTO dispute consultations with the US, announce retaliatory tariffs on select American imports, and launch an antitrust investigation into Google.

The Hong Kong government has condemned the US measures as “grossly inconsistent with the relevant WTO rules” and criticized the US for ignoring the city’s status as a separate customs territory. It has urged the US to rectify its actions. This is not the first time Hong Kong has taken its trade disputes with the US to the WTO. As a former British colony that returned to Chinese rule in 1997, Hong Kong operates as a semi-autonomous city with separate economic and social systems from mainland China.          ……New US Tariffs

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

The WTO confirmed on Tuesday that it received notice of China’s request for consultations with the US regarding the tariffs imposed on Chinese goods. This sets off a 60-day period for the two sides to resolve their differences. If they fail to do so, 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 US administrations blocked appointments of judges on its appeals court.                      ..New US Tariffs

Separately, Hong Kong’s post office announced late Thursday that it would continue to suspend shipping items containing goods to the United States until further notice. This decision was made despite the US Postal Service reversing its ban on packages from the city and other parts of China. The Hong Kong government stated that Hongkong Post is in talks with the US postal administration but further clarification is still needed on certain matters, including over a tariff. It reiterated its strong disapproval of the US imposition of additional duty on Hong Kong products, urging the US to take “urgent actions to rectify its wrongdoing.”                      ……New US Tariffs

The US post office had announced on Tuesday that it would no longer accept parcels from China, including Hong Kong. It reversed course on Wednesday but gave no reason, stating 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, it confused those who wanted to post to the US from Hong Kong and sparked concerns over the potential impact on online shopping platforms like Shein and Temu, which are popular with younger US shoppers 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 was under $800. The US imported about $427 billion worth of goods from China in 2023, according to the US Census Bureau, with consumer electronics, including cellphones, computers, and other tech accessories, making up the biggest import categories.

The ongoing trade tensions between the US and China, and now Hong Kong, highlight the complexities and challenges in global trade relations. As Hong Kong prepares to file its complaint with the WTO, the outcome will be closely watched by stakeholders and observers alike. The resolution of these disputes will have significant implications for international trade and the economies involved.