Hong Kong has announced plans to file a complaint against the United States’ newly imposed tariffs with the World Trade Organization (WTO), after Beijing’s retaliatory levies on American goods took effect. Hong Kong’s Chief Secretary, Eric Chan, revealed on Tuesday that the financial hub would take action due to the U.S. “completely ignoring” Hong Kong’s status as a separate customs territory.
The escalating trade conflict between the U.S. and China reached new heights last week when President Donald Trump introduced a 10% tariff on Chinese imports, prompting Beijing to retaliate with tariffs on U.S. products. On Monday, China enacted a 15% tariff on coal and liquefied natural gas, along with a 10% levy on oil and agricultural equipment.
According to Chan, the American tariffs are “absolutely inconsistent with WTO rules” and “totally disregarded” Hong Kong’s special status. He emphasized that under the “one country, two systems” principle, Hong Kong enjoys a distinct customs territory within China. However, following the imposition of China’s sweeping national security law on Hong Kong in 2020, the U.S. revoked the city’s special status, worsening tensions.
While Beijing has already filed a complaint with the WTO, calling the U.S. tariffs a “serious violation of international rules,” Chan reaffirmed Hong Kong’s intention to challenge Washington’s actions. He added that Hong Kong would lodge the complaint but did not provide a timeline for the move.
The dispute comes amid broader challenges faced by Hong Kong, including changes to its trading relationships with the U.S. In 2020, the Trump administration required that goods made in Hong Kong be labeled as “made in China,” a move that stripped Hong Kong of one of its longstanding advantages as a global trading hub.
The U.S. Postal Service added to the confusion last week by suspending inbound mail from China and Hong Kong, a decision it reversed shortly afterward. The suspension had sparked chaos in the retail and shipping sectors, who were uncertain how to navigate the shifting tariffs.
Trump’s recent tariff measures also targeted the so-called “de minimis” duty exemption, which allowed parcels valued under $800 to enter the U.S. without tariffs. The exemption has been largely used by e-commerce giants like Shein, Temu, and Amazon, but Trump’s latest action is aimed at curbing the flow of precursor chemicals for fentanyl production.
In its WTO complaint, China accused the U.S. of using “unfounded and false allegations” about China’s role in fentanyl trafficking as a pretext for imposing tariffs. Beijing argued that these measures are “discriminatory and protectionist,” thus violating international trade regulations.
As the WTO dispute process unfolds, China hopes for a ruling similar to the 2020 decision, which found that Trump’s tariffs on Chinese goods violated WTO rules. However, any potential relief for Beijing remains uncertain, as the WTO Appellate Body has been largely inactive for years due to the U.S. blocking the appointment of judges over concerns about judicial overreach.
