HONG KONG — The government of Hong Kong announced on Friday its intention to lodge a complaint with the World Trade Organization (WTO) regarding newly instituted U.S. tariffs that specifically target products from the southern Chinese territory.
The United States has recently enacted a 10% additional tariff on various Chinese goods and has rescinded a previous customs exemption that allowed low-value parcels to enter the U.S. without incurring taxes.
These actions have prompted a response from China, which has sought WTO consultations with the U.S. Additionally, China has introduced retaliation measures that involve tariffs on selected American imports along with an antitrust probe into Google.
In its official statement, the Hong Kong government criticized the U.S. tariffs as “grossly inconsistent with the relevant WTO rules” and accused the U.S. of disregarding Hong Kong’s status as a distinct customs zone. The government called for the U.S. to amend these actions.
This is not an isolated incident; Hong Kong has a history of turning to the WTO for redress in trade disputes with the U.S. The city, which was a British territory before reverting to Chinese sovereignty in 1997, maintains a semi-autonomous status with its own economic and social systems.
During the administration of former President Donald Trump, Hong Kong raised concerns over a U.S. requirement that goods exported from the city be labeled as “Made in China.” In 2022, the WTO ruled in favor of Hong Kong, stating that the U.S. requirement was unwarranted.
On Tuesday, the WTO confirmed it had received China’s request for consultations with the U.S. regarding the newly imposed tariffs on Chinese products. This step initiates a 60-day period during which the two nations are encouraged to resolve their disagreements; failing that, the issue can escalate to a three-judge panel within the Geneva-based organization.
Nevertheless, the WTO’s ability to effectively resolve disputes has been hindered in recent years, with multiple U.S. administrations blocking the appointment of judges to its appellate court.
In a related development, Hong Kong’s postal service announced that it would continue to halt shipments of goods to the United States until further notice, even though the U.S. postal service had lifted its temporary ban on packages coming from Hong Kong and other regions of China.
The Hong Kong government stated that Hongkong Post is currently engaged in discussions with U.S. postal officials, but clarity on several issues, including tariffs, is still pending. They reiterated their strong opposition to the additional duties imposed on Hong Kong products and urged the U.S. government to promptly correct its wrongful actions.
The U.S. postal service had declared on Tuesday that it would no longer accept any parcels from China, including those originating from Hong Kong. However, it reversed this decision the following day without elaborating on the reasons behind it, stating instead that it would collaborate with Customs and Border Protection to implement measures aimed at collecting the new tariffs to ensure a smooth delivery process.
Although the postal ban was lifted swiftly, the confusion surrounding these changes raised concerns among residents of Hong Kong who wished to send packages to the United States.
There are also apprehensions regarding the possible repercussions on online shopping platforms like Shein and Temu, which have become favorites among U.S. consumers, particularly younger shoppers, for their affordable clothing and other goods that are typically shipped directly from China.
The direct and economical postal services have been crucial for these companies to maintain competitive pricing, bolstered by the previous “de minimis” exemption that allowed shipments valued under $800 to enter without paying tariffs.
Recent statistics from the U.S. Census Bureau reveal that the U.S. imported approximately $427 billion worth of goods from China in 2023, predominantly consumer electronics, including smartphones, computers, and various tech accessories.
