Hong Kong to File WTO Complaint Against U.S. Tariffs

By James Pomfret
HONG KONG (Reuters) – Hong Kong will file a complaint regarding recent U.S. tariffs to the World Trade Organization (WTO), asserting that the U.S. has ignored the city’s status as a separate customs territory, said Chief Secretary Eric Chan on Tuesday.

> “This is absolutely inconsistent with the WTO rules. Of course, they have totally disregarded Hong Kong as a separate customs territory,” Chan stated to reporters.

Chan announced plans to lodge a complaint to the WTO about what he termed an unreasonable arrangement, though he provided no specific details.

This statement comes in response to a U.S. decision to impose 10% tariffs on goods from Hong Kong as President Donald Trump continues to target Chinese imports.

Last week, the U.S. Postal Service temporarily suspended all inbound mail and packages from China and Hong Kong, only to reverse the decision shortly thereafter. This suspension led to confusion among retailers and express shipping firms about how to manage U.S. tariffs.

> “All I can say is the policies are mercurial,” Chan remarked.

Trump’s action also involved closing the “de minimis” duty exemption for packages valued under $800, aiming to curb the flow of fentanyl and precursor chemicals into the U.S.

Despite its reputation as a free and open trading hub, Hong Kong’s situation worsened after China’s implementation of a national security law in 2020, which drew U.S. criticism and led to the revocation of the territory’s special status under U.S. law, further escalating tensions between the U.S. and China.

Subsequently, the U.S. mandated that goods produced in Hong Kong for export must be labeled as made in China, which undercut one of Hong Kong’s key competitive advantages as a trading hub.